Annual Financial Report 2007€¦ · GmbH & Co.KG GERMANY 100% Rosenbauer Österreich GmbH AUSTRIA 100% Rosenbauer Española S.A. SPAIN 62.11% Rosenbauer AG SWITZERLAND 100% SK Fire

Annual Financial Report 2007

rbi2007 cover jahresfinanzbericht E 28.04.2008 8:16 Uhr Seite 1

ORGANIZATION CHART

RK Aerials LLC.

USA 50%

Central States

Fire Apparatus LLC.

USA 100%

Rosenbauer

Motors LLC.

USA 100%

Rosenbauer

Deutschland GmbH

GERMANY 100%

Eskay Rosenbauer

Sdn Bhd

BRUNEI 80%

Rosenbauer Feuer-

wehrtechnik GmbH

GERMANY 100%

Rosenbauer

Finanzierung GmbH

GERMANY 100%

Metz Aerials

GmbH & Co. KG

GERMANY 100%

Rosenbauer

Österreich GmbH

AUSTRIA 100%

Rosenbauer

Española S. A.

SPAIN 62.11%

Rosenbauer AG

SWITZERLAND 100%

SK Fire PTE Ltd.

SINGAPORE 100%

Rosenbauer YongQiang

Fire Fighting Vehicles Ltd.1)

CHINA 50%

Rosenbauer

Holdings Inc.

USA 100%

Metz Aerials

Management GmbH

GERMANY 100%

General Safety

Equipment LLC.

USA 100%

Rosenbauer

America LLC.

USA 50%

Rosenbauer Manage-

ment Services GmbH

AUSTRIA 100%

Rosenbauer

South Africa (PTY) Ltd.

SOUTH AFRICA 100%

Rosenbauer Holding

GmbH & Co. KG

GERMANY 100%

1) Not consolidated

TRADE/SERVICE

HOLDING/MANAGEMENT

PRODUCTION FACILITY

ROSENBAUER INTERNATIONAL AG

AUSTRIA

rbi2007 lage_2104 E WEB 21.04.2008 11:46 Uhr Seite 3

2007 2006 2005

Rosenbauer Revenue m€ 426.1 372.0 321.3Group thereof Austria m€ 41.4 40.6 43.8

thereof international m€ 384.7 331.4 277.5

EBIT m€ 30.8 25.1 19.6

EBIT margin 7.2% 6.8% 6.1%

EBT m€ 25.4 22.0 15.9

Consolidated profit m€ 19.9 18.4 12.0

Cash flow fromoperating activities m€ 24.1 (1.4) 21.9

Investments m€ 7.1 11.2 7.9

Order backlog as at Dec 31 m€ 375.4 354.1 243.1

Order intake m€ 458.7 485.9 377.0

Employees (average) 1,593 1,452 1,407

Employees as at Dec 31 1,651 1,517 1,393

Key balance sheet Total assets m€ 228.8 206.2 168.8data Equity1)

in % of total assets 31.8% 30.7% 36.9%

Capital employed (average) m€ 127.7 111.2 97.9

Return on capital employed 24.1% 22.6% 20.0%

Return on equity1) 37.4% 35.1% 27.0%

Net debt m€ 30.6 38.7 9.0

Working capital m€ 60.7 49.1 40.0

Gearing ratio 29.6% 37.9% 12.6%

Key stock exchange Highest share price € 39.9 25.0 18.1figures2)

Lowest share price € 24.0 15.4 14.4

Closing price € 32.8 25.0 15.8

Number of shares

before share split m units – 1.7 1.7

after share split m units 6.8 – –

Market capitalization m€ 223.0 170.0 107.1

Dividend m€ 4.83) 4.8 3.4

Dividend per share € 0.73) 0.7 0.5

Dividend yield 2.1% 2.8% 3.2%

Earnings per share € 2.2 2.0 1.0

Price/earnings ratio 14.9 12.5 15.4

1) Including minority interest and subordinated (mezzanine) 2005.2) Previous year’s figures were converted pursuant to the share split (4-for-1).3) Proposal to Annual General Shareholders’ Meeting.

For more information on the Rosenbauer share, please contact:

Gerda Königstorfer

Phone: +43 732 6794-568, Fax: +43 732 6794-89

[email protected], www.rosenbauer.com

KEY F IGURES

rbi2007 lage_2104 E 21.04.2008 11:32 Uhr Seite 4

GROUP S ITUATION REPORT

ECONOMIC ENVIRONMENT

The world economy in 2007 was still characterized by a stable economic climate. Duringthe second half of the year, however, the uncertainties emanating from the property crunchin the USA started spreading through the entire financial sector, leading to a pronounceddownward revision of the economic forecasts for 2008.Consumer sentiment in the USA and Europe has fallen markedly due to the property crisis,the high prices for energy and – especially in the Euro area – the rising inflation rate.

In the USA, the uncertainties surrounding the extent and the consequences of the sub-prime crisis increased dramatically at the end of 2007 when it emerged that major bankshad sustained far greater losses than expected. This prompted growing concerns overthe possibility of the loan and property crisis spreading into the economy as a whole. Thegrowth that took place during the final months of 2007 was mainly driven by exports andby a strong build-up in inventories, with consumption unable to give any impetus. Economicgrowth in the USA thus seems set to flatten further in 2008.

The US dollar fell by around another 10% against the Euro during 2007, hitting a recordall-time low. The main reasons for the dollar’s slide are essentially the same as in the pre-vious year: stronger growth in the Euro zone, and the size of the US trade deficit. Withfurther interest rate cuts expected in the USA, there is little prospect of any appreciablelet-up in the pressure on the US dollar.

The EU Commission estimates that Euro-zone growth reached 2.6% in 2007, only margin-ally below the previous year’s figure of 2.7%. Its forecasts for 2008 point to the risks aris-ing from the low dollar exchange rate and the worldwide financial crisis. Accordingly, itseconomic growth forecast for the Euro zone has been revised downward to 2.2%.

The key economic indicators in Europe all reflected an unmistakable uptrend in 2007. InGermany, for instance, average annualized unemployment rolls shrank by more than700,000 to 3.78 million, equating to a rate of 7.8%. In the same period, German exportsrose by 7.6% over the previous year. The only area to fall behind expectations was privatehouseholds’ consumer expenditure, which rose by a mere 0.8%. The German economy isset to expand rather more slowly in 2008 than last year. The general expectation is forslightly weaker growth of around 2%, driven mainly by capital investment and exports.The ten new EU member states enjoyed growth rates of around 6% in 2007, significantlyabove the EU average. This is expected to slow to around 3.5% in 2008. Lower demandfrom the USA and Western Europe, and the sharp increase in consumer prices, are likely toput a damper on these countries’ economic prospects.

The Chinese economy notched up double-digit growth for the fifth year in succession in2007. GDP surged 11.5%, exactly as forecast by the Chinese authorities. While expectinggrowth to continue at similarly high rates for the next few years, the OECD also drawsattention to the dangers of overheating.

26

World economy

North America

Central and Eastern Europe

China


DEVELOPMENTS IN THE FIRE FIGHTING SECTOR

Demand in the main markets of the USA, Europe and Asia continued at a high level lastyear. The world market for fire fighting vehicles has grown to a volume of around 2,400 m€per year. More than 90% of these vehicles go to the NAFTA region, Western Europe, theMiddle East and Central, South and East Asia. Fire & safety equipment is not included inthis volume.In North America, Europe, Russia and Central Asia, the lion’s share of demand is tradi-tionally met by local manufacturers. A trend towards local value creation has also becomeincreasingly apparent in Southeast Asia in recent years.

2006 was an absolute record year for sales of fire fighting vehicles in the USA. In 2007,volumes on this, the world’s biggest single market, fell back by more than 10%, returningto the level of previous years. The above-averagely high procurement volume in 2006 waslargely due to the impending introduction of more stringent emissions standards from2007 onward, which caused planned procurement to be brought forward. A number ofestablished fire apparatus manufacturers again lost market share in 2007.

Demand for fire fighting vehicles also dropped in Europe’s biggest market, Germany, aftersales volumes had briefly risen by more than 10% in 2006 in the run-up to a value addedtax hike from January 1, 2007. The drop was especially pronounced in the case of largemunicipal vehicles, with sales falling back 14% compared to the previous year. Despite theimproved economic climate in Germany, then, the hoped-for trend reversal on the fireequipment market has still not come to pass.Demand in the countries of Central and Eastern Europe continued to show a positive trendin 2007. Whereas sophisticated vehicles are still mainly supplied by noted internationalmanufacturers, simpler fire fighting vehicles are increasingly coming from new local sup-pliers. This is intensifying competition on the hotly contested CEE markets. In SouthernEurope, procurement is still dominated by centralized tendering procedures, which is whythese markets mostly have spot-market character.

The Chinese fire equipment market has established itself as the leading growth marketin Asia. Annual sales volumes today are estimated at around 3,000 vehicles. As in thepast, the Chinese government is making great efforts to upgrade the country’s infrastruc-ture. This development is being held back by the strict Chinese certification proceduresand the limited manpower resources of the testing authorities. For both locally manufac-tured and imported fire fighting vehicles, this has led to longer delivery times.

The hefty increases in the price of oil have swollen budgets in the region, providing thenecessary resources for massive infrastructure build-out. Demand here is mainly for top-quality, technically sophisticated vehicles of all categories, as well as the entire spectrumof fire & safety equipment. In the Middle East, too, the very great attractiveness of thismarket has drawn in new competitors, increasing the pressure on the established manu-facturers.

The markets in Latin America and Africa are characterized by spot projects based on cen-tral procurement programs, in some cases with lead-times of several years. This makesit difficult to forecast developments on these markets.

27G R O U P S I T U AT I O N R E P O R T

International demand

at a high level

North America


China – Growth market

in Asia

Middle East

Spot markets


REVENUES, ORDERS AND INCOME SITUATION

In 2007, the Rosenbauer Group once again outdid the record revenue and result figuresit had achieved the year before. This success is largely due to the favorable market envi-ronment and strong international position enjoyed by the Group. Worldwide productioncapacity was expanded once again in 2007. Despite occasional bottlenecks in the avail-ability of materials and chassis, all its production locations were working to capacity.Hence the Group’s successful continuation of the growth trajectory of recent years.

Group revenues rose last year to 426.1 m€ (2006: 372.0 m€), breaking all previous records.This 54.1 m€ increase in revenues resulted primarily from the export business of Rosen-bauer International AG, and from higher revenues in the Group’s German segment.Once again, the biggest revenue earner in 2007 was Rosenbauer International AG, withrevenues of 228.7 m€ (2006: 180.5 m€). With an export ratio of 89% (2006: 86%) andshipments going to about 100 countries, the company has a stronger international orien-tation than any other in the industry.

Revenue trends

2007

2006

2005

As in previous years, Central and Eastern Europe were once again Rosenbauer’s biggestsales regions in 2007. Around 44% (2006: 48%) of Group revenues, amounting to 188.8 m€(2006: 177.4 m€) were achieved on these markets. Thanks to the Group’s strong positionon the US market, the NAFTA countries – with 97.2 m€ (2006: 86.8 m€) or 23% of thetotal (2006: 23%) – took second place in the revenue rankings. They were followed by theArab World with 63.9 m€ (2006: 44.0 m€), and then by Asia and Oceania with 47.5 m€(2006: 29.3 m€). The revenues from all other countries amounted to 7% (2006: 9%).

The “Vehicles” product segment accounted for the biggest single share (68%) of Grouprevenues in 2007 (2006: 67%). The “Aerials” segment posted revenues of 55.7 m€ (2006:45.9 m€), corresponding to a 13% share of total revenues (2006: 12%). Accounting for 10%(2006: 12%) and 4% (2006: 4%) of revenues respectively, “Fire & safety equipment” and“Fire fighting components” were at roughly the same level as the year before. “Service &spare parts” and “Other” revenues accounted for 5% of the total in 2007 (2006: 5%).

Revenues by region 2007

7% Others

15% Arab countries

44% Central/Eastern Europe

11% Asia/Oceania

23% NAFTA

28 G R O U P S I T U AT I O N R E P O R T

Revenues once again

at all-time high

426.1 m€

372.0 m€

321.3 m€


Revenues by product segments 2007

5% Service & spare parts, Others

4% Fire fighting components

10% Fire & safety equipment

68% Vehicles

13% Aerials

At 458.7 m€ (2006: 485.9 m€), Group order intake in 2007 was slightly below the levelreached the year before, but was a very satisfactory figure nonetheless. The result is acontinuation of the high levels of capacity utilization at the Group’s production facilities.Thanks to the buoyant order intake trend in the final quarter of the year, the volume of orderbacklog at year-end 2007 reached a new record level of 375.4 m€ (2006: 354.1 m€).

Order intake and order backlog as at December 31

Order intake Order backlog

2007

2006

2005

The main contributors to the 2007 result were the export successes scored by Rosen-bauer International AG, the strong growth in the Group’s US business over the past fewyears, and the overseas shipments made by its Spanish subsidiary. This took the operat-ing result (EBIT) up by 23% to 30.8 m€ (2006: 25.1 m€), while improving the EBIT marginfrom 6.8% to 7.2%. The positive long-term market environment, coupled with the company’sstrong sales and distribution system and brand quality, has contributed substantially tothe success of the Rosenbauer Group. The Rosenbauer brand today stands worldwide forinnovative products, acknowledged quality and high technical standards.

EBIT and EBIT margin

EBIT EBIT margin

2007

2006

2005

Owing to the increased financing requirements for fulfilling the high volume of shipments, andto markedly higher interest rates, the “Finance cost” swelled to –5.4 m€ (2006: –3.0 m€).The pro-rata (50%) result of Rosenbauer YongQiang, the Group’s joint venture in the Chineseprovince of Guangdong which has been reported at equity in the balance sheet since 2005,came to 0.0 m€ last year (2006: –0.1 m€).


Orders

Income situation

458.7 m€ 375.4 m€

485.9 m€ 354.1 m€

377.0 m€ 243.0 m€

30.8 m€ 7.2%

25.1 m€ 6.8%

19.6 m€ 6.1%


Due to the heavier financing expenses, profit before tax (EBT) rose less than proportion-ally to 25.4 m€ (2006: 22.0 m€). The taxation ratio increased from 16.4% in 2006 to 21.7%.The previous year’s lower tax burden resulted from the realization of (originally not capi-talized) loss carryforwards at Metz Aerials. The stated taxation expense came to 5.5 m€(2006: 3.6 m€). Reflecting the increased financing expenses and higher taxation ratio,the Group’s consolidated profit, at 19.9 m€, was only 8.2% up on the previous year’s figure(2006: 18.4 m€).The profit shares for minority interest held by the co-partners in Rosenbauer America LLC.and Rosenbauer Española S.A. came to 4.8 m€ (2006: 4.7 m€).

The 50% Rosenbauer YongQiang joint venture in Dongguan, which was started in May2005, did not come up to expectations last year. In 2007, a pro-rata result of 0.0 m€(2006: –0.1 m€) was achieved on total revenues of 4.7 m€ (2006: 6.1 m€). Contrary toexpectations, it has not yet proved possible to convince Chinese customers sufficiently ofthe merits of the joint venture’s high-quality products as a substitute for the high levelsof imported fire fighting vehicles. To improve its local market position, its sales activitieshave been considerably stepped up with the recruitment of additional personnel.

FINANCIAL POSITION, ASSET AND CAPITAL STRUCTURE

The Group’s financial position and asset situation primarily reflect last year’s steep in-crease in production and shipment volumes. For industry-specific reasons, the balance-sheet structure of the Rosenbauer Group at the year-end is typified by a high proportionof current assets. This results from the turnaround times, lasting several months, for thevehicle contracts that are currently under manufacture.

The rise in the balance-sheet total to 228.8 m€ (2006: 206.2 m€) was essentially due tothe Group’s organic growth. On account of the large sums invested in the Leonding facil-ity the previous year, the total invested in 2007 was considerably smaller, at 7.1 m€(2006: 11.2 m€). This still exceeded the ongoing depreciation charges of 5.1 m€ (2006:5.3 m€), but by a narrower margin. Owing to the realization of capitalized loss carryfor-wards, the deferred tax assets were less than the previous year, at 2.6 m€ (2006: 5.8 m€).The 26% increase in inventories, to 102.2 m€ (2006: 80.9 m€) was necessary in order todeal with the greatly increased volume of business in 2007 and to allow the high produc-tion volumes to be sustained. Thanks to ongoing monitoring of the trade receivables, itwas possible – despite the higher shipment volumes – to keep the current receivables,at 47.7 m€, at the same level as the year before (2006: 48.2 m€).

Equity capitalization was raised still further in 2007, increasing by 15% to 72.7 m€ (2006:63.4 m€). The key factor underlying this rise was the improvement – once again – in theGroup’s result. This allowed the Group’s equity ratio to rise from 30.7% to 31.8%, despitethe higher balance-sheet total. Largely because of the higher prepayments received fromcustomers, the interest-bearing liabilities needed for financing the high production volumeswere reduced from 42.9 m€ to 37.1 m€. This took total current liabilities to 119.8 m€(2006: 107.6 m€).


Joint venture in China

Organic growth enlarges

balance-sheet total

Equity capitalization

strengthened


Despite increased funding, the Group’s net debt, meaning the balance of interest-bear-ing liabilities less cash and short-term deposits less securities, decreased last year to30.6 m€ (2006: 38.7 m€). This went hand in hand with an improvement in the gearingratio, to 29.6% (2006: 37.9%).Net cash flow from operating activities rose last year from –1.4 m€ to 24.1 m€. This im-provement, despite the high year-end shipment volumes, is mainly due to the increasedprofit before tax and to the emphasis on accounts-receivable management at the year-end.

Key profitability figures

2007 2006 2005

Capital employed (average) in m€ 127.7 111.2 97.9

Return on capital employed (ROCE) in % 24.1 22.6 20.0

Return on equity (ROC)1) in % 37.4 35.1 27.01) Including minority interest and subordinated (mezzanine) capital 2005

INVESTMENTS

Group’s investments totalled 7.1 m€ (2006: 11.2 m€) in 2007. The bulk of this was ac-counted for by further expansion of production capacity (52%), while 40% went on replace-ment investments and fulfilling official directives, and 8% on rationalization measures.Depreciation in the Rosenbauer Group remained at the same level as last year, amount-ing to 5.1 m€ (2006: 5.3 m€). Of these, 0.2 m€ (2006: 0.5 m€) were attributable to intan-gible assets. Since 2005, the investment outlays have been well above the depreciation,in line with the goal of stepped-up growth and the additions to capacity which this entails.

Investments and depreciation

Investments Depreciation

2007

2006

2005

A major investment focus in 2007 was the optimization of production operations at theLeonding plant. In 2006 the production area for air crash tenders had been greatly ex-panded, and further production areas were adapted and modernized in 2007.To improve the logistics, new equipment including overhead cranes, fork-lifts and produc-tion-specific transport racks was acquired. Also, the staff recreation rooms were extendedand modernized. To help tackle the hugely increased production volumes in the vehiclemanufacturing facilities, an extra press brake worth 142.0 k€ was purchased.


Cash flow clearly improved

Investments exceed

depreciation

Production optimization

in Leonding

7.1 m€ 5.1 m€

11.2 m€ 5.3 m€

7.9 m€ 4.8 m€


In order to boost retail sales in Leonding, the fire & safety equipment shop was modern-ized, involving a spacious conversion of the salesrooms and adjoining rooms. The ware-house for firefighters’ uniforms and protective clothing now has a traveling rack installation,and the “Fire & safety equipment” division has been given a showroom of its own.The warehousing space freed up as part of this reorganization has been used for theredesigned electrical pre-assembly operations and for assembly of portable generators,which is to be carried out in-house in future. 500 m2 of new production space have beencreated in this way.

With regard to further development of manufacturing capability at the Neidling plant, anupgrading program will be needed to increase capacity here, to be implemented in sev-eral steps. The first of these was the acquisition in 2007 of 13,000 m2 of adjoining landwith which to enlarge the site. Extensions and additions to the production areas, personnelrooms and outdoor areas worth around 2.0 m€ are planned for 2008.

RESEARCH AND DEVELOPMENT

The Rosenbauer Group invested 7.0 m€ in research and development in 2007 (2006: 7.4 m€).This amount is equal to 2.6% (2006: 3.4%) of the relevant net sales proceeds from ownproduction. Around 66% (2006: 67%) of these development costs (4.6 m€, as against 5.0 m€in 2006) were incurred by Rosenbauer International AG, the Group’s center of expertisefor specialty vehicles and fire fighting components.

Research and development/R&D ratio

Research and development R&D ratio

2007

2006

2005

Our strong innovation management system provides the basis for the permanent develop-ment effort in the Rosenbauer Group. Innovation management at Rosenbauer is greatlyenriched by the involvement of employees who are themselves active members of volun-teer fire brigades and who input their practical experience directly into our developmentwork. This ensures that every new product is not only technically right up to date, butalso meets firefighters’ specific requirements in a practice-oriented way.

The newly developed Rosenbauer lighting mast FLEXILIGHT is integrated into the body-work of the fire fighting vehicle, and gives firefighters near- and far-field illumination ofhitherto unrivalled intensity. In the spotlighting position, the seven Xenon floodlights putout approximately 560 lux of lighting power measured ten meters from the vehicle; thisis 17 times greater than from a conventional lighting mast with four halogen floodlights.By focusing the floodlights and turning and tilting the masthead, the beam can be veryprecisely aimed. Also specially developed for use with the new lighting mast, the remote-control system allows firefighters to operate all mast functions over a range of 100 metersor more.


Expansion of capacity

at the Neidling plant

New FLEXILIGHT lighting mast

7.0 m€ 2.6%

7.4 m€ 3.4%

5.8 m€ 2.9%


In developing the L32 A, Metz Aerials has augmented its product range with an turntableladder whose topmost boom segment can be lowered together with the cage attached to it.The L32 A gives firefighters an extra degree of maneuverability, and thus greater flexibil-ity when carrying out rescue from heights. As part of this development project, the Metzrescue cage was also given a design makeover. Further improvements were made in termsof the space available in the cage, and of the way in which extra features such as thestretcher, PPV blower and water monitor can be utilized.Among the characteristic features of all Metz turntable ladders – and thus of the new L32 A – are their innovative high-performance hydraulic system, CAN control technology,computer-aided 3D load monitoring on the turntable, upright rescue cage, continuoushorizontal-vertical jacking and not least their revolutionary superstructure concept, in linewith the new L32 generation that was unveiled in September 2006.

The latest innovation in the fire fighting components field is the Rosenbauer PositioningSystem (RPS). This compact, handheld unit makes quick and easy work of calculatinghow best to arrange a fire fighting water line across long distances. When water for firefighting has to be brought a long way to the scene of the fire, several portable fire pumpsare set up in series. The best places to set up these pumps have to be very carefully workedout with reference to distance and elevation measurements, pump inlet and outlet pres-sures, and the friction losses taking place in the hoses.The newly developed RPS is the first-ever system to compute the ideal position for theportable fire pumps at the push of a button, saving firefighters the task of performingtedious calculations. The crucial advantages are the huge time savings when setting upa supply of fire fighting water at the fire ground, and the fact that the system determinesthe optimum number of fire pumps.

To cater for the very specific requirements of industrial fire brigades, Rosenbauer has devel-oped a new, fully automated direct injection proportioning system for foam compounds. Itsupplements the existing offerings in this product segment with a rugged, weight-reducedand above all exceptionally versatile unit.On the HYDROMATIC, the operator can choose between water and water/foam mixture foreach separate pressure outlet. The proportioning rates are continuously adjustable from0% to 7%. The foam proportioning system is controlled by way of the proven Logic ControlSystem (LCS), with which all the fire fighting technology on board the vehicle can beoperated. This makes the complex system easy and practical to handle.

An innovation was also added to the range of truck-mounted fire pumps in 2007. The newN10 mainly stands out for its compact dimensions, low weight and high pump output(1,500 l/min at 10 bar). It was specifically designed as an underfloor truck-mounted pumpin order to free up the space previously intended for the pump at the rear of the vehicle,enabling this to be used for additional payload. Especially on small fire fighting vehicles,whose space constraints greatly limit their payload capacity, this new development putsa significant extra advantage in the hands of fire brigades.


New Metz turntable ladder L32 A

with articulated cage boom

Rosenbauer Positioning

System (RPS) to compute

fire fighting water line

HYDROMATIC – the new

direct injection foam

proportioning system

for industrial fire fighting

N10 underfloor truck-

mounted fire pump


SUSTAINABILITY

As a globally active Group in the field of mobile fire protection and civil defence solutions,Rosenbauer always has regard to environmental and social parameters in the pursuit ofits economic interests. Rosenbauer manufactures products for fire brigades all over theworld, whose main task is of course to save lives and safeguard property. Ensuring thatthese products have the very greatest operational availability and quality is a centralplank in the responsibility of Management and all staff. Trust and respect, and continuedemployee skill development, are crucial concerns of the company’s Management.

Short-term thinking that only goes as far as the next quarter’s results has no place in theRosenbauer business ethos. Sustainability-oriented Management decisions, and a policyof recruiting only the very best employees and winning their long-term loyalty to the com-pany, are the cornerstones of our future success.Developing and producing cutting-edge technology is only possible when employees unstint-ingly contribute their talent, creativity and commitment in equal measure. This attitudeis stimulated and fostered by continual development of the corporate culture and by thecreation of a positive working climate within the company.

Involvement in a volunteer fire brigade is a hiring criterion that we are always very happyto see when recruiting new employees. With their practical real-life experience, the fire-men in our own ranks make a vital contribution towards translating customers’ require-ments into high-performing products. By being at the service of the wider community,they also stand for continuity of the values that make Rosenbauer special.

At its European facilities, Rosenbauer offers over 100 young people the opportunity offull-time vocational training. Compared with other industrial firms, this gives Rosenbaueran unusually high apprenticeship training rate. The thorough vocational education givento the apprentices assures a steady supply of new talents and is an effective tool againstany future skills shortages. Many young employees stay with the company after finishingtheir apprenticeships.

In the field of preventive health care and workplace safety, Rosenbauer offers a broadportfolio of benefits: As part of the “Generation 45+” campaign, older staff have the oppor-tunity to take part in health-promoting programs so as to keep fit for the many and variedchallenges of the modern-day world of work. As well as all this, there are also vaccina-tion campaigns against influenza, and grants towards the cost of vaccinations againstCentral European tick-borne encephalitis. By offering support seminars for staff whowant to give up smoking, and by making its Leonding and Neidling plants alcohol-freezones, Rosenbauer is making a meaningful contribution towards ensuring a healthy workingenvironment. With its different types of sport, the Rosenbauer sports association – a fix-ture of company life for decades – promotes employees’ fitness, and with it their healthand well-being.

Rosenbauer has built up a network of subcontracting enterprises in the districts sur-rounding its production plants, and agreed long-term co-operative ventures with the part-ners involved. In so doing, Rosenbauer is playing an active role in creating and sustainingregional employment and economic structures.


Responsibility towards

society at large

At the service of the wider

community

Long-term partnership with

subcontracting enterprises


The many and varied tasks tackled by fire brigades necessitate a high degree of individ-ualization when it comes to designing the products. Rosenbauer fulfills customer wishesby always fitting out the industrially manufactured products in line with the ideas of thefire brigade in question, to the extent permitted by the applicable standards.

Long-lived products, and equally persistent availability of spare parts, are a key customerrequirement. This is why Rosenbauer After-Sales Service operates a worldwide networkof service stations and is on call around the clock. Another contribution to sustainabilityis refurbishment: This involves older vehicles being rehabilitated from the ground up, andrefitted to the very latest state of the art in terms of engineering and safety.Fire engineering equipment has to function reliably for years and decades on end, whichis why Rosenbauer ensures the sustained, lasting quality of its products by means of systematic in-house quality management. The quality management system is certified toEN ISO 9001:2000 and is lived out in practice at Rosenbauer as a dynamic process.The demands being made by fire brigades are constantly evolving. For us, this means apermanent innovation effort that stays closely tuned to what is happening “on the ground”.By institutionalizing innovation management, we have created the framework for system-atically gearing product development to the specific requirements of the fire brigades.

ENVIRONMENTAL MANAGEMENT

Resource conservation, energy efficiency and comprehensive environmental managementare all firmly anchored in the Rosenbauer corporate culture. Continuous improvement ofthe Group’s environmental balance sheet is another declared aim. The EN ISO 14001:2004certified environmental management system is, in turn, part-and-parcel of an integratedmanagement system. The technologies used in production are mainly the classic processesof mechanical engineering and custom vehicle manufacturing, respectively of metalwork-ing and plastics processing. As the activities involved are primarily assembly work, theimpact on the environment is comparatively limited.

By expressing all environmental and workplace safety processes in terms of a uniformsystem of key figures, the environmental management system gives us the framework forcontinual improvement of the Group’s overall environmental footprint. As a global-play-ing manufacturing and trading enterprise, the Rosenbauer Group sees environmental pro-tection as the basis for all sustainability-oriented action.

The test rigs for truck-mounted fire pumps at the Leonding plant were changed over fromdiesel to an environmentally friendly electric drive during 2007. As no Rosenbauer pumpleaves the factory without a test report, this move has brought about a lasting reductionin emissions. The two new test rigs were remodeled along ergonomical lines, greatly enhanc-ing testing efficiency. Leonding has the status of a certified independent test center forstandardized testing of pumps and pump units.


Client orientation

Continuous improvement

of environmental balance sheet

Emissions reduction

on the pump test rig


QUALITY MANAGEMENT

The Rosenbauer Quality Management System (QMS) is a central controlling instrumentthat is filed on the company’s Extranet and so is instantaneously available at all Grouplocations. All the main enterprise processes have been designed with reference to qualitycriteria, enabling process deviations to be recognized and corrected at an early stage.Not least, the consistent implementation of this quality policy is reflected in the Group’squality costs: Despite the high output and the large number of new products in 2007, thesecosts were still kept at the same level as in previous years. As a proportion of overall pro-duction costs (not including chassis), they came to 1.94% in 2007, as against 1.92% theyear before.

Firefighters’ safety depends to a high degree on the quality and reliability of their personalprotection equipment, their vehicles and their tools. Rosenbauer America has implementeda fire fighting accident prevention program over the past few years, setting new stan-dards in the USA with a series of innovations. In recognition of these efforts, the Group’sUS companies have received several distinctions, among them the “Best New ApparatusAward” from the US trade press, with its “emphasis on safety as the overriding priority”.

The Rosenbauer Group management system is uniformly structured, and documented inthe Extranet as a central tool for controlling and for letting employees see quickly whichrules apply in any given case. It consists of the QMS (quality management) and UMS(environmental management) systems, as well as of the guidelines for workplace safetyand the hygiene regulations. The impact of the various processes on quality, environmentand workplace safety is displayed in a system of key figures. In the course of a combinedcompliance audit in 2007, the cross-disciplinary Rosenbauer management system wasre-certified, namely for the Leonding, Neidling, Graz, Telfs, Karlsruhe, Passau and Lucken-walde sites on the basis of EN ISO 9001:2000 and (in the case of the Austrian sites) tothe environmental standard EN ISO 14001:2004.

RISK MANAGEMENT

Enterprise means deliberately taking risks in order to seize opportunities. With this in mind,the aim of opportunity and risk management at Rosenbauer is to ensure that the riskstaken on are reasonable and manageable, and are dealt with in a responsible manner.This entails identifying risks at the earliest possible time, limiting their potential impactand thereby forestalling any threat to the continuance of the enterprise.

As a global corporate Group, Rosenbauer is exposed to many different types of risk in thecourse of its worldwide business operations. Continuous identification, appraisal and con-trolling of risks are an integral part of the management, planning and controlling process.Rosenbauer has laid down its risk-policy principles in writing and integrated them in theGroup-wide management system.The immediate responsibility for risk management lies with the Management of the oper-ational unit in question. This is the level at which risk-related topics are regularly dealtwith, and at which the annual risk inventory is carried out. Overall responsibility for oper-ational risk management rests with the Executive Board. The results of the risk inventoryare collated by the central risk management team and discussed with the SupervisoryBoard once a year.


Compliance audit re-certified

the management system

Fire fighting accident prevention

program in the USA

Cross-disciplinary

management system

Part of the

management system


One essential element for ongoing monitoring of the economic risks is the reporting system.Thanks to the consistent implementation of this reporting system, not only any risk posi-tions, but also opportunities, can be recognized and deliberately responded to, or optimized,at an early stage. The Internal Auditing unit monitors the adequacy and correctness of therisk management activities.

The relevant risk map for Rosenbauer is characterized by the growing intensity of com-petition, developments in the world economy, and above all, by the resulting spendingpower of public-sector budgets. Further influencing factors are the threats of terrorismand of increasing natural disasters, and the inadequate infrastructure in many upwardlyaspiring regions.With its consistently implemented internationalization strategy and worldwide distribu-tion network, Rosenbauer has achieved a well-balanced market position in comparisonwith its competitors. In the field of specialty vehicles for airports and industry, marketdevelopments tend to be rather more dynamic than is the case with municipal vehicles,and so are prone to greater fluctuation.Risks for the fire safety business arising from changes in the overall political or legal con-ditions are, as a rule, unavoidable. Political crises and embargos may impede access tocertain markets.The annual business plan is derived from the multi-year Group strategy and comprises atarget catalog which is broken down into the different areas of business and serves as acontrolling instrument. This systematic approach enables to discern – and then largelyavoid – any strategic risks at an early stage.Competition in the fire equipment sector is becoming noticeably more intensive. No longerconfining themselves to the municipal markets, small, local vehicle-bodywork firms havestarted to compete against the established manufacturers in international tenders aswell. Ultimately, this heightened competition raises the pressure on margins. Rosenbauercounters this risk by continuously bringing out new developments, by offering modularproduct concepts and by ongoing process-efficiency enhancement.

Our manufacturing activities call for thorough examination of the risks along the entirevalue chain. In view of today’s ever shorter innovation cycles, increasing importanceattaches to research and development work.Risk minimization on the procurement side is accomplished by ongoing observation ofthe relevant markets, by care in the negotiating and drafting of contracts, and by appro-priate safeguards. In order to ensure that the production operations are kept supplied onschedule and to the requisite quality level, our main vendors are continuously audited.This greatly reduces the risk of production outages. The fact that the Group has its owninternational network of production facilities also helps to minimize operational risks.

Demand for raw materials on world markets remained at a very high level in 2007. Rosen-bauer was unable to escape this development entirely, although the prices of raw mate-rials are of only minor significance for overall production costs. These are much moregreatly influenced by the costs of buying in vehicle chassis, by manpower costs and – interms of materials – by the price of aluminium. Price increases on chassis can generallybe passed on to customers, while the aluminium prices are fixed by forward contracts.


Sectoral and company-

specific risks

Operational risks


Excess production capacity can have a negative impact on both overheads and margins.For this reason, capacity is analyzed as part of the annual planning process, and adjustedwhere necessary by means of relevant measures. Moreover, any earnings risk which mightarise as a result of disruption of production operations is covered by appropriate produc-tion-outage insurance policies. Adequate insurance coverage is also in place for costsarising in connection with fire, explosion or similar natural dangers.

The IT management system that has been installed permits effective ongoing adaptationof the systems, security strategies and security concepts to current requirements. Imple-mentation of the IT strategy has led to an increasing standardization of the IT structureswithin the Group in recent years.No significant legal claims or litigation risks were extant in the reporting period. Sufficientprovisions are made where applicable, as a precaution against any litigation risks.Owing to the nature of the manufacturing operations and to the large number of differentsuppliers, environmental risks – and risks in connection with the reliability of raw-mate-rials and energy supplies – are of only minor significance.

Rosenbauer lives out a consistent, rigorous quality management system aimed in part atforestalling product-liability cases. However, despite continuous improvements and prod-uct-quality control, liability cases cannot be ruled out altogether. In order to minimize thepecuniary risk which is possible here – particularly in North America – the instrument ofproduct-liability insurance is employed throughout the Group.

Particularly in a client-orientated manufacturing operation like the one of Rosenbauer, ahigh degree of specialist fire fighting knowledge is a crucial factor. A thorough approach tostaff development, with institutionalized appraisal interviews and a performance-orientedremuneration system are the central instruments at Rosenbauer for keeping qualified andmotivated employees with the company.

Financial risks are countered by regular, thorough monitoring of a bundle of influencingfactors, and by the use of appropriate hedging instruments. The Group’s credit standing,and with it the safeguarding of liquidity, are of critical importance. For this reason, Finan-cial Management meets with the Group’s bankers once a year for rating talks from whichthe Group’s position on the financial market is established.

The operational risks arising from interest and currency exchange rate movements arehedged by derivative financial instruments such as currency futures and options, and inter-est instruments. In this connection, we would refer the reader to the explanations in theNotes.Credit risks from potential payment default are rated as relatively low, as the majority ofcustomers are public-sector purchasers. In the case of deliveries made to non-OECD coun-tries, use is generally made of both state and private export guarantee schemes to coverthe political risks encountered in these cases.

Based on the analysis of currently identifiable risks, there are no indications of any riskswhich might – either on their own or in conjunction with other risks – jeopardize the con-tinuance of the Rosenbauer Group. Rosenbauer considers itself well prepared to continuerising to the demands made of the company by its market and by its competitors in future.


Product risks

Personnel risks

Financial risks

Overall risk assessment


PROCUREMENT MANAGEMENT

The Group’s overall purchasing volume of production materials and merchandise came to312.3 m€ last year (2006: 265.4 m€). This corresponds to 73% of Group revenues and isattributable to the large proportion of items which, in our industry, is typically bought infrom external vendors. 86% of Rosenbauer International AG’s procurement volume issourced in Europe, and most of the remainder in the USA.

Procurement volumes of Rosenbauer International AG 2007

3% Rest of the world

11% USA

43% Austria

9% Rest of Europe

34% Germany

The most important suppliers are from Germany, Austria, Sweden and the USA. The biggestsingle item in the Group’s procurement volumes are the chassis for fire fighting vehicles,accounting for 24% of the total. The chassis for the PANTHER 4x4 and 6x6 air crash ten-ders are mainly manufactured at the Group subsidiary Rosenbauer Motors LLC. inWyoming, Minnesota.The considerably higher purchasing volumes than in the previous year caused capacitybottlenecks at several supplier firms, and delays in delivery. This was particularly true ofchassis manufacturers, who were unable to keep their usual delivery times to the extentdesired, due to the high level of business activity in the economy at large.Emphasis was placed in 2007 on achieving greater pooling and internationalization ofpurchasing activities. In this regard, a number of system suppliers from the new EU mem-ber states were integrated and qualified.

The prices of the main raw materials used in the vehicle manufacturing industry, primeamong them steel, rose further in 2007. The massive steel-price hikes of the past twoyears have had only a limited impact on the Group, as its vehicle superstructures arelargely made of aluminium. For some years now, a consistent hedging strategy has beenemployed for purchasing the raw material aluminium, and this has succeeded in smooth-ing out particularly severe price peaks.

EMPLOYEES

At year-end 2007, the Rosenbauer Group employed a total of 1,651 people, 134 more thanthe year before (2006: 1,517). Manpower numbers were boosted mainly in the productionoperations and in production-related areas. In Austria, the workforce grew by 7% to 782employees, and increased by 10% outside Austria to a total of 869. This total breaks downinto 975 (2006: 884) blue-collar staff, 574 (2006: 540) white-collar staff and 102 (2006:93) apprentices (74 of them in Austria). The company also created additional employmentin Austria and Germany by taking on leased personnel in the amount of more than 130.


Higher purchasing volumes

Limited impact of increased

raw material prices

More employees in Austria

and abroad


The average age of the staff at the Austrian Rosenbauer locations is 34.5 years (blue-collar),37.8 years (white-collar), and the average length of stay with the firm is 12.3/12.5 yearsfor blue/white-collar staff respectively. The low fluctuation rate of 1.79% (blue-collar) and5.41% (white-collar) is another good indicator of the stability of the company.

Number of employees

2007 1,651

2006 1,517

2005 1,393

Employees by region 2007

2% Asia

26% NAFTA

48% Austria

24% Rest of Europe

Being largely family-owned, Rosenbauer is an enterprise that thinks and acts for the longterm. This also shapes its personnel policy, which is geared to continuity and a high levelof employee identification with the company’s objectives.The Rosenbauer corporate culture embodies the same values as those that characterizethe fire fighting community itself: helpfulness, comradeship and trustworthiness. Oneresult of this is that staff strongly identify with the company, a factor which played a bigpart in enabling Rosenbauer to deal so successfully with the high shipment volumes askedof it during the year. The exemplary commitment shown by staff, even when under greatstrain, was crucial here.

Rosenbauer sells high-tech fire engineering equipment all around the globe. To do this, itneeds specially trained, highly motivated employees. Vocational and continuing profes-sional training thus has a high priority in the Group. At its Austrian locations alone, Rosen-bauer is providing over 70 apprentices with full-time vocational training. Among theapprenticeships offered are those in the technical professions of mechanical engineeringtechnician, mechatronics technician, electrical plant engineer, machining technician anddesign engineer, and the commercial job qualifications of technical sales representative,office assistant, IT technician and purchaser. After completing their apprenticeships, youngemployees can join a special trainee program to qualify as “all-purpose” skilled techni-cians.

Great emphasis is laid on in-house personnel development. In Leonding alone, 15 produc-tion employees were given carefully targeted training during the year, to qualify them fornew technical duties. These programs are supplemented by a wide range of internal and


Sustainable personnel

development

731 786

782 869

706 687 � Austria � International


external in-service training offerings, with courses covering everything from languages totechnical training, safety, IT, teamwork and leadership. Expenditure on vocational and in-service training in the Group came to 362.0 k€ last year (2006: 356.0 k€).

Rosenbauer stepped up its recruitment marketing efforts last year, primarily at the Leondingfacility. Rosenbauer attracted over 100 new recruits in 2007, at a time when many othercompanies were having great difficulty finding suitable skilled staff. Among the reasonsgiven for Rosenbauer’s attractiveness as an employer are its recognized high innovationalcapability, its varied product range and its modern remuneration system. This latter assuresevery employee of a bonus, the size of which depends on the company’s operating resultand on the individual’s performance.Cross-locational, trans-national working is crucially important for the internationalizationof the Group. In both of the past two years, there has been an increased trend for youngeremployees to be sent abroad for longer postings. The main destination countries wereGermany, China and the USA. The focus here is on technical and organizational skill trans-fer, and on continuing to develop intercultural team working within the Group.

Rosenbauer prides itself on being one of the leading companies in the fire equipmentsector and is determined to consolidate and extend this position. A word of thanks is dueat this point to all staff for their superb performance throughout 2007, a year marked byan exceptionally heavy workload. Our thanks are also due to the workforce representa-tives at the Group companies in Austria and abroad, for their constructive co-operation.

DISCLOSURE PURSUANT TO §243a UGB(AUSTRIAN CORPORATE CODE)

The 15th Ordinary General Shareholders’ Meeting resolved to effect a 4-for-1 share split.This then increased the number of shares in issue from 1.7 million to 6.8 million. In con-nection with this Corporate Action, the General Meeting also resolved an increase in thenominal share capital from 12.4 m€ to 13.6 m€. This was effected from the company’s ownresources, by conversion of the relevant partial amount from the committed capital reserveand without the issuance of new shares. The nominal share capital is henceforth dividedinto 6.8 million non-par-value bearer shares, each embodying a 2.0 € portion of the nomi-nal share capital.A 51% stake in Rosenbauer International AG is held by Rosenbauer BeteiligungsverwaltungGmbH. No limitations are in force regarding the voting rights or the assignment of shares.To the best of the Company’s knowledge, there are no shareholders having special con-trolling rights. This is also true of employees owning shares in Rosenbauer International AG.

§7 Sect. 3 and §9 Sect. 4 of the Articles of Association of Rosenbauer International AGlay down the provisions for the appointment and dismissal of members of the ExecutiveBoard and of the Supervisory Board. The only persons eligible for appointment as Mem-bers of the Executive Board are those who have not yet reached the age of 65 at the timeof such appointment. The appointment of a person to the Executive Board who has alreadyreached the age of 65 at the time of such appointment shall, however, be permitted if theGeneral Meeting passes a resolution to this effect by a simple majority of the votes cast.


Attractive employer

Thanks to all staff and

workforce representatives

4-for-1 share split effective

Provisions of the Articles

of Association


The only persons eligible for election to the Supervisory Board are those who have notyet reached the age of 70 at the time of such election. The election of a person to theSupervisory Board who has already reached the age of 70 at the time of such electionshall, however, be permitted if the General Meeting passes an appropriate resolution bya simple majority of the votes cast.

There is no authorized capital at the present time. At the 15th Ordinary General Share-holders’ Meeting, a resolution was passed prolonging the authorization to (re-)purchasethe Company’s own shares pursuant to §65 Sect.1 Clause 8 of AktG (Austrian Stock Cor-poration Act) by a further 18 months, until November 24, 2008.There are no significant agreements which would come into effect, substantially changeor terminate if there should be a change in the controlling interest in the company as aresult of a takeover bid. No indemnity agreements have been concluded between the com-pany and its Executive and Supervisory Board members or its employees providing forthe event of a public takeover bid.

OUTLOOK

Overall, the situation on the world fire equipment market is expected to remain stablethrough 2008, although certain regions will be prone to greater fluctuations. Internationalair traffic swelled another 7% last year. The main drivers of growth were rising passengernumbers, especially in Asia, the trend towards new “superjumbo” airliners, and stepped-up expansion of small and medium-sized airports, which are increasingly being used bylow-cost airlines and are thus having to enlarge their capacity.The three most important factors affecting the world economy – the health of the US dol-lar, the oil price and the political conflicts in the Middle East – will continue to have animpact on the fire equipment sector in future. This will be particularly true of spot markets,which are heavily dependent on the oil price, whereas demand volumes in the markets ofhighly developed countries are likely to remain comparatively stable.

The booming business on international export markets is being driven by rising demandfor infrastructure investment – primarily in emerging markets – and high oil revenues,especially in the countries of the Middle East.The volume of international business orders on hand at the turn of the year remained ata high level. In view of the high volume of international project business currently beingworked on, a strong inflow of new orders is also expected for 2008. The Leonding plant,which produces mainly for export, is thus set to continue working to capacity.

The up-and-coming markets of the CEE (Central and Eastern European) countries are stillcharacterized by great economic dynamism. Moreover, infrastructure procurement is beingassisted by EU funding. This suggests that a continuation of the high project volume maybe expected in 2008 as well.


Further information

Solid business trend

in the sector

Export business



In Germany – Europe’s biggest single market – sales volumes of large municipal vehiclescontracted again, having risen by more than 10% the year before. What is more, with fewerfunds being budgeted, a trend has emerged towards smaller vehicles, which have muchlower margins. Despite the improved economic climate in Germany, then, the hoped-fortrend reversal on the fire equipment market has still not come to pass. This developmentmay be expected to continue unchanged through 2008.

After a record 2006 due to pre-emptive purchases before the introduction of new emis-sions standards in 2007, volumes in the USA returned to the level of previous years.Demand is expected to remain constant in 2008, with Rosenbauer still confident of beingable to increase its market share again due to the weakness of several of the incumbentvehicle manufacturers.

The Chinese fire equipment market has established itself as the leading growth market inAsia. Annual sales volumes today are estimated at over 3,000 vehicles. The RosenbauerYongQiang joint venture in Dongguan has persisted with its determined product and qualitypolicy, and has greatly strengthened its sales activities by building up a direct distributionnetwork. A rise in shipment volumes is expected in 2008.

For 2008, Rosenbauer Group Management expects that market volume will remain at ahigh level. In view of the high volume of orders on hand, and the resulting high degree ofcapacity utilization at the production companies, it is reasonable to suppose that the cur-rent year will bring a continuation of both top and bottom-line growth.


Germany under continued

pressure

North America

Extension of sales activities

in China


SEGMENT DEVELOPMENT

REGIONAL DEVELOPMENT

The reports on the regional segments are broken down by Group company location ratherthan by sales market. This means that the segment reports refer to the revenues andresults earned by the individual companies both on their respective local market and fromexport sales.

Breakdown of the Group revenue 2007

10% Revenue in Austria

53% foreign subsidiaries

37% Export from Austria

The Austrian segment lifted its revenues by 25% in 2007 to 243.2 m€ (2006: 194.6 m€)on the back of the strong growth in the export business of Rosenbauer International AG.EBIT also rose, by 43% to 15.7 m€ (2006: 11.0 m€).The Austrian segment is made up of Rosenbauer International AG, most of whose revenuesare earned from export sales, and the sales company Rosenbauer Österreich GmbH.

With manufacturing facilities in Leonding and Neidling, Rosenbauer International AG is theGroup’s largest production company. The Leonding plant is the center of expertise for indus-trial fire fighting vehicles and air crash tenders, fire fighting components and fire & safetyequipment. Rosenbauer’s line of “AT” (aluminium-technology superstructure) municipalfire fighting vehicles is also developed and produced in Leonding, mainly for sale on thesophisticated fire equipment markets of Central Europe. Leonding had a workforce of 696at year-end 2007. 636 vehicles – around one third of all the vehicles manufactured in theGroup – were shipped from here.The Neidling production site, with a workforce of 83, is the center of expertise for com-pact vehicles with a GVW of up to approximately 10 tonnes. Neidling is also responsiblefor developing and manufacturing interior fitting components and holding-fixture systemsfor delivery to the other European Group companies.

Revenues at Rosenbauer International AG were lifted by nearly 27% last year to 228.7 m€(2006: 180.5 m€). This growth is mainly attributable to revenue growth in the Middle East,Southeast Asia and the CEE region. Overall, 89% of Rosenbauer International AG’s revenueswere earned from export sales. Rosenbauer has responded to the growth in traffic at inter-national airports by expanding production capacity for the PANTHER, the top-of-the-rangemodel in its air crash tender fleet. As a result, output from the Leonding-based PANTHERproduction operations was raised by more than 50% over the previous year, to a total ofnearly 100 vehicles.

44

Austria

Rosenbauer International


Rosenbauer Österreich GmbH, also headquartered in Leonding, is the sales and servicecompany for the Austrian market. The company sells fire fighting vehicles and equipment,and operates service establishments in Leonding, Neidling, Telfs and Graz. The vehiclesare manufactured at the Leonding and Neidling production locations. Despite the intensifiedcompetition for municipal vehicle business, which led to the insolvency of an establishedAustrian competitor in late 2007, the company managed to keep its revenues, of 41.4 m€,at the same level as the previous year (2006: 40.6 m€). With an innovative product policyand the systematic expansion of its service activities, Rosenbauer Österreich is success-fully counteracting the increasing market pressure.

Segment key figures Austria 2007 2006

Revenues in m€ 243.2 194.6

EBIT in m€ 15.7 11.0

Investments in m€ 4.5 8.9

Employees (average) 753 710

Following a record year in 2006, volumes on the world’s largest single market returnedin 2007 to the level of previous years. Although overall demand fell by around 10%, theUS segment was still able to boost its revenues, posting119.5 m€ (2006:109.7 m€). In fact,with EBIT of 9.2 m€ (2006: 8.4 m€), the US companies scored an even better result thanin 2006. Their 2007 figures were adversely affected by the approximately 10% decline inthe US dollar against the Euro. In US dollar terms, the US segment posted a very respec-table increase in revenues from 137.9 m USD to 164.0 m USD, and boosted its EBIT from10.5 m USD to 12.6 m USD. In this light, the 2007 results are an even more remarkablesuccess.

The successes of recent years can be put down to the widening network of independentrepresentatives in almost every state of the USA, the innovative product line, and thebusiness difficulties of several competitors. Rosenbauer is now the second-largest manu-facturer of fire fighting vehicles in the USA. This is an impressive confirmation of the strategyupon which the Group embarked ten years ago when it first set up Rosenbauer America.The US segment consists of the holding company Rosenbauer America LLC. and of theoperational divisions General Division, Central Division, Rosenbauer Aerials Division andRosenbauer Motors.

General Division, based in Wyoming, Minnesota, produces industrial fire fighting vehiclesand air crash tenders, and customized municipal vehicles for professional and volunteerfire brigades. The company is active on both the US market and selected export markets.In response to strong domestic demand for air crash tenders on custom chassis, andgiven General Division’s long experience with the production of high-tech vehicles, thePANTHER air crash tender has also been produced in Wyoming (MN) since 2000. Thanksto its strong position in specialty vehicles, General Division managed to buck the generaldowntrend on its market and increased its revenues in 2007, from 29.4 m€ to 31.7 m€.

Central Division is located in Lyons, South Dakota, and produces fire fighting vehicles forall fields of use. The great strength of this company lies in the predominantly industrialfabrication of its vehicles. Its main clients are volunteer fire brigades in the USA. Over thepast few years, Central Division has also made a determined push into exports, and nowsupplies vehicles to countries where US standards are preferred.


Rosenbauer Österreich

USA

General Division

Central Division


On its home market, it has built up business still further by strengthening its sales organi-zation. Last year, these efforts helped revenues climb to 73.2 m€ (2006: 66.6 m€). The60% revenue growth achieved by Central Division since 2004 testifies to the fine workdone by its Management.

Rosenbauer Aerials Division, headquartered in Fremont, Nebraska, produces hydraulicturntable ladders and ladder trucks to US standards. These are supplied both to the Group’sUS companies and to other superstructure manufacturers in the USA. The companyachieved revenues of 6.5 m€ last year (2006: 6.9 m€).

Rosenbauer Motors produces chassis for the PANTHER air crash tender at the GeneralDivision plant in Wyoming, Minnesota. These are supplied exclusively to the Group’s ownsuperstructure fabrication operations in the USA and Austria. Due to the buoyant demandfor this hit model, both in international business and in the USA itself, the firm was ableto boost its revenues to 15.3 m€ in 2007, from 10.8 m€ the year before.

Segment key figures USA 2007 2006


EBIT in m€ 9.2 8.4



After the fleeting recovery of 2006, Germany once more saw a marked decline in salesvolumes of large municipal vehicles in 2007. Despite the improved economic climate inGermany, then, the hoped-for trend reversal on the fire equipment market has still notcome about. At 92.2 m€, 2007 revenues in the German segment as a whole were 9% upon the previous year (2006: 84.7 m€). This improvement is largely due to stepped-up inter-national sales activities at Metz Aerials. However, the strategic product initiative launchedby Metz Aerials the previous year led to higher development and start-up costs in 2007,which depressed earnings. At 2.8 m€ (2006: 2.7 m€), EBIT in the German segment remainedat the previous year’s level.

Metz Aerials GmbH & Co. KG, Karlsruhe, is the European center of expertise for aerials.The company produces fully automated, hydraulic turntable ladders and aerial rescue-platforms with operational heights of between 20 and 56 meters. Metz Aerials boostedits revenues by over 20% in 2007, to 49.3 m€ (2006: 41.1 m€). This surge in revenuesresulted from higher sales of aerial rescue-platforms, and from larger turntable ladderexport volumes.

Rosenbauer Feuerwehrtechnik GmbH produces fire fighting vehicles to DIN/EU standards.With eight externally run service locations, and another two of its own, the companyassures nationwide coverage of the German municipal market. It also supplies customersall over the world with the “ES” (EuroSystem) series, and manufactures superstructuremodules for the parent company in Austria. At 30.9 m€, the company’s 2007 revenueswere flat against the previous year (2006: 30.9 m€).


Rosenbauer Aerials Division

Rosenbauer Motors

Germany

Metz Aerials

Rosenbauer Feuerwehrtechnik


Rosenbauer Deutschland GmbH is the sales and service company for industrial fire fight-ing vehicles and air crash tenders manufactured by Rosenbauer International AG at theLeonding plant. The company also supplies “AT”-type municipal vehicles to German clients.The sales company generated revenues of 12.3 m€ in 2007 (2006: 13.0 m€).

Segment key figures Germany 2007 2006


EBIT in m€ 2.8 2.7



The Spanish segment’s 2007 revenues of 28.9 m€ were slightly down on the previous year(2006: 31.8 m€). Owing to stepped-up export shipments to South America and Africa, thetwo previous years’ revenues had been comparatively high. With 2007 EBIT of 2.3 m€(2006: 1.9 m€), the company can look back on another very good year.Rosenbauer Española S.A. is headquartered in Madrid, while its vehicle production oper-ations are located 300 kilometers south of the Spanish capital in Linares. Its productionrange comprises municipal vehicles, forest fire fighting vehicles, industrial fire fightingvehicles and air crash tenders on commercial chassis.

Segment key figures Spain 2007 2006


EBIT in m€ 2.3 1.9



In 2007 the Swiss segment saw a drop in EBIT, from 392.8 k€ to 217.2 k€, on revenuesof 6.5 m€ (2006: 6.8 m€). This was mainly due to the postponement of procurementdecisions on products which had already been the subject of concrete enquiries.Rosenbauer Schweiz AG is the sales and service organization for the Swiss market, andis based in Oberglatt, near Zurich. It offers the entire line of Rosenbauer products, as wellas aerial work platforms of various heights.

Segment key figures Switzerland 2007 2006


EBIT in m€ 0.2 0.4




Rosenbauer Deutschland

Spain

Switzerland


Two companies make up the Asian segment: SK Fire PTE Ltd., Singapore, and Eskay Rosen-bauer Sdn Bhd, Brunei. The Asian segment posted 2007 EBIT of 976.9 k€ (2006: 687.6 k€)on revenues of 11.6 m€ (2006: 11.6 m€).

SK Fire produces fire fighting vehicles and superstructures for aerials that are suppliedto Hong Kong, Singapore and neighboring countries. At 11.6 m€, the company managedto keep its 2007 revenues at the same high level as the previous year (2006: 11.4 m€).Eskay Rosenbauer distributes fire fighting vehicles on its local market, and posted rev-enues of 0.0 m€ last year (2006: 1.2 m€).

Segment key figures Asia 2007 2006


EBIT in m€ 1.0 0.7



PRODUCT SEGMENTS

With revenues of 287.1 m€ (2006: 247.4 m€), the “Vehicles” product segment last yearaccounted for the biggest single share (68%) of Group revenues. Its record 2007 revenuesmean that this segment had grown by an impressive 39.7 m€ over the previous year. Thesales successes with air crash tenders, and the expansion of international export business,were the key drivers underlying this development.

Vehicles supplied

2007

2006

2005

Vehicle revenues by category 2007

4% Industrial fire fighting vehicles

76% Municipal vehicles

20% Air crash tenders

Rosenbauer produces all types of fire fighting vehicles, to both European and US stand-ards. These two “standards environments” differ widely in many regards: The chassis aredesigned to meet highly divergent specifications, and so are completely different, not onlyvisually and technically but also – and especially – in terms of their dimensions and weight.Whereas in Europe, combined normal and high-pressure extinguishing systems (from 10


Asia

Vehicles

1,789 units

1,593 units

1,513 units


to 40 bar) are in widespread use, in the USA the use of high-pressure systems in firefighting is not common. As there are also major differences in the typical building struc-tures and thus in the fire fighting tactics, in the USA it is standard practice to use normal-pressure pumps with a substantially higher delivery rate than in Europe.The main categories of fire fighting vehicles are municipal fire fighting vehicles, air crashtenders and industrial fire fighting vehicles. The Rosenbauer Group’s production facilitiesare located in Austria, the USA, Germany, Spain, Singapore and – since mid-2005 – alsoin China. Its biggest manufacturing operations are Rosenbauer International AG in Austriaand the Central Division in the USA. The core markets for Rosenbauer’s vehicle businessin 2007 were the USA, Germany and Austria.

Segment key figures Vehicles 2007 2006

Order intake in m€ 312.5 342.1



With revenues of 19.1 m€ (2006: 14.8 m€), “Fire fighting components” account for 4%(2006: 4%) of total Group revenues. Last year’s positive trend is in large measure due tothe success of the new generation of pumps fitted out with the innovative “LCS” LogicControl System, which makes the pumps very much easier to operate. The pump units,fire fighting systems and components installed on the vehicles produced by Group com-panies are included in the revenues of the “Vehicles” segment.The “Fire fighting components” product segment encompasses pumps and pump units,portable fire pumps, foam proportioning systems, monitors and their electronic controlsystems. This Segment also includes mobile and stationary foam extinguishing installa-tions (POLY and CAF systems). Rosenbauer develops and produces the entire line of firefighting components at the Leonding plant. These are supplied to the Group companies,selected superstructure manufacturers and end-customers. A total of 1,611 truck-mountedfire pump sets (2006: 1,225), 784 pump units (2006: 630) and 1,126 portable fire pumps(2006: 977) were produced in 2007.

Number of pumps and portable fire pumps produced

Pumps Portable fire pumps

2007

2006

2005

Segment key figures Fire fighting components 2007 2006





Fire fighting components

1,611 units 1,126 units

1,225 units 977 units

1,314 units 669 units


The “Fire & safety equipment” product segment generated revenues of 43.5 m€ in 2007(2006: 45.4 m€), accounting for a 10% share of Group revenues (2006: 12%).Rosenbauer offers the fire fighting sector a complete range of fire & safety equipment forevery type of mission. This range includes anything from personal protective equipment(PPE) and technical emergency equipment to special equipment for dealing with the after-math of hazmat accidents and environmental disasters.As well as the standard range of products to be expected of a fire equipment retailer,Rosenbauer has also developed its own line of innovative products that stand out for theirhigh quality, functional design and good value for money. Its globe-spanning sales organiza-tion enables high sales numbers to be reached, permitting economically viable industrial-scale production. The proportion of 2007 “Fire & safety equipment” revenues accountedfor by Rosenbauer’s own products came to more than 30%, with over 50% of these in-housedevelopments being younger than five years.

Segment key figures Fire & safety equipment 2007 2006




Revenues of 55.7 m€ were achieved with aerials in 2007 (2006: 45.9 m€), accounting fora 13% (2006: 12%) share of Group revenues. This leap in revenues resulted from an increasein sales figures for aerial rescue-platforms and a rise in sales of larger turntable laddersin the field of international business.

The “Aerials” product segment encompasses turntable ladders and hydraulic rescue plat-forms. The center of expertise for European-standard vehicles is Metz Aerials in Karlsruhe,while US-standard vehicles are manufactured at the Rosenbauer Aerials Division in Fre-mont, Nebraska. The bulk of revenues in this segment were accounted for by turntableladders and aerial rescue-platforms produced by Metz Aerials, and by the RosenbauerAerials Division in the USA. Other manufacturers’ equipment was supplied by the parentcompany in Leonding and by the subsidiaries in Singapore and Switzerland.

Segment key figures Aerials 2007 2006





Fire & safety equipment

Aerials


Posting revenues of 18.7 m€ (2006: 16.9 m€) in 2007, the “Service & spare parts” fieldaccounted for 4% of the total (2006: 5%). Despite the small percentage that it contributesto overall Group revenues, this is nevertheless a strategically important area of businessfor the Group.

The tight budgets for fire services in many countries mean that refurbishment – i.e. thetechnical modernization of existing fire fighting vehicles – is becoming an increasinglyimportant area of business. In order to better exploit this opportunity, a special refurbish-ment program has been developed, ranging from total overhaul of the fire fighting systemsall the way through to completely new vehicle superstructures. The share of revenuesgenerated by the “Service & spare parts” business is comparatively small, as the bulk ofthe service and repair work is carried out by Rosenbauer service partners operating inover 100 countries.

Segment key figures Service & spare parts 2007 2006

Order intake1) in m€ 21.1 19.3


Investments in m€ 0.0 0.01) Inclusive order intake from Other revenues.

The “Other revenues” have no causal connection with the ordinary activities of the Groupand are thus not directly attributable to any one product segment. They do not, as a rule,have any significant influence on the corporate result, and last year amounted to 2.0 m€(2006: 1.6 m€).

Segment key figures Other revenues 2007 2006




Service & spare parts

Other revenues


52

REPORT OF THE SUPERVISORY BOARD

At its meetings held during 2007, the Supervisory Board was informed regularly by theExecutive Board upon the situation of the company and the progress of its business. Thereports hereon given by the Executive Board, together with its reports on important itemsof business, were approved by the Supervisory Board.

The Supervisory Board met four times for ordinary and one time for extraordinary meet-ings in the year under review. In addition, regular meetings of the owner representativeson the Supervisory Board took place at which matters of operational and strategic cor-porate governance were discussed with the Executive Board. The Supervisory Boardmembers attended a total of 13 meetings of the Supervisory Board and of its committeesduring 2007.

The Audit Committee met in April 2008 to review and prepare the approval of the annualfinancial statements, to draw up a proposal for the appointment of an external auditor, andfor deliberations in all matters bearing upon company and Group financial reporting. In aseparate meeting the committee also dealt with the activities of the internal auditing unitsand with the Groups’s risk management system. The members of the Audit Committee wereAlfred Hutterer (Chairman), Dieter Siegel and Rudolf Aichinger.

Both the financial statements and the situation report have been audited by Ernst & YoungWirtschaftsprüfungsgesellschaft mbH in accordance with statutory provisions.

The final results of the audit have not given reason to any grounds for query. Accordingly,the financial statements and the situation report have been endorsed with an unqualifiedaudit certificate. The auditors’ report has been submitted to the members of the Super-visory Board in accordance with §273 Sect. 3 UGB (Austrian Corporate Code).

The financial statements and the Group’s financial statements as at December 31, 2007have been approved by the Supervisory Board and are thus established in accordance with§125 AktG (Austrian Stock Corporation Code). The Supervisory Board concurs with theExecutive Board’s proposal regarding the distribution of profits and proposes that thisproposal be adopted at the Annual General Shareholders’ Meeting.

Leonding, April 2008

Alfred HuttererChairman of the Supervisory Board


53CONSOLIDATED F INANCIAL STATEMENTS 2007ROSENBAUER GROUP

54 Consolidated balance sheet as at December 31, 200755 Consolidated income statement 200756 Consolidated statements of changes in equity58 Consolidated cash flow statement59 Schedule of provisions60 Movement in the consolidated assets62 Segment reporting

64 N O T E S

64 General remarks65 Consolidation principles67 Reporting and valuation methods73 Notes to the consolidated balance sheet

and income statement

92 Auditor’s report

rbi2007 anhang_2104 E 21.04.2008 11:34 Uhr Seite 53

54 CONSOLIDATED BALANCE SHEETAS AT DECEMBER 31 , 2007

Dec 31, 2007 Dec 31, 2006

A S S E T S Note N° in k€ in k€

A. Non-current assets

I. Tangible assets (1) 41,253.1 39,731.1

II. Intangible assets (1) 370.5 483.6

III. Securities (2) 213.6 202.5

IV. Joint venture (3) 2,447.7 2,014.0

V. Receivables (4) 1,370.9 1,221.0

VI. Deferred tax assets (5) 2,582.1 5,845.6

48,237.9 49,497.8

B. Current assets

I. Inventories (6) 102,175.3 80,860.3

II. Production contracts (7) 24,386.7 23,709.4

III. Receivables (8) 47,674.7 48,188.2

IV. Cash and short-term deposits (9) 6,314.5 3,945.6

180,551.2 156,703.5

Total assets 228,789.1 206,201.3

Dec 31, 2007 Dec 31, 2006

E Q U I T Y A N D L I A B I L I T I E S Note N° in k€ in k€

A. Equity

I. Share capital (10) 13,600.0 12,359.0

II. Capital reserves (10) 23,703.4 24,944.4

III. Other reserves (10) (549.9) 144.8

IV. Accumulated results (10) 24,876.4 15,039.0

61,629.9 52,487.2

V. Minority interest (11) 11,026.8 10,884.4

72,656.7 63,371.6

B. Other non-current liabilities

I. Non-current interest-bearing liabilities (12) 13,533.2 13,761.2

II. Other non-current liabilities (13) 1,997.0 1,453.9

III. Non-current provisions (14) 20,107.0 19,388.4

IV. Deferred income tax liabilities (5) 660.4 632.9

36,297.6 35,236.4

C. Current liabilities

I. Current interest-bearing liabilities (15) 23,571.4 29,091.8

II. Advance payments received 22,159.6 10,747.2

III. Trade accounts payable (16) 31,417.4 30,218.4

IV. Other current liabilities (17) 30,685.3 25,387.8

V. Provisions for taxes (18) 1,143.5 517.5

VI. Other provisions (18) 10,857.6 11,630.6

119,834.8 107,593.3

Total equity and liabilities 228,789.1 206,201.3


2007 2006

Note N° in k€ in k€

11. Revenue (19) 426,128.3 371,966.0

12. Other income (20) 4,706.9 3,656.0

13. Change in inventories of finished goods

and work in progress 18,008.3 10,324.1

14. Expenses for materials and services (301,519.3) (252,348.3)

15. Personnel expenses (21) (83,287.7) (77,223.6)

16. Depreciation on intangible

and tangible assets (5,136.3) (5,308.5)

17. Other expenses (22) (28,069.4) (25,929.7)

18. Operating result (EBIT)

before result of joint venture 30,830.8 25,136.0

19. Financing expenses (23) (6,369.6) (4,418.2)

10. Financial income (24) 967.7 1,427.2

11. Profits/losses on joint venture (3) 4.8 (124.5)

12. Profit before tax (EBT) 25,433.7 22,020.5

13. Taxes on income (25) (5,505.8) (3,620.1)

14. Consolidated profit 19,927.9 18,400.4

thereof

– profits on minority interest 4,787.5 4,726.0

– profits shareholders of parent company 15,140.4 13,674.4

Average number of shares issued (33) 6,800,000.0 1,700,000.0

Basic earnings per share (33) 2.23 € 8.04 €

Diluted earnings per share (33) 2.23 € 8.04 €

55CONSOLIDATED INCOME STATEMENT 2007


2007 Attributable to shareholders in the parent company

Other reserves

Share Capital Currency Re-evaluation Hedging A

in k€ capital reserves translation reserve reserve

As at Jan 1, 2007 12,359.0 24,944.4 (341.2) 0.0 486.0

Currency differences 0.0 0.0 (784.2) 0.0 0.0

Total amounts of joint venture

recognized directly in equity 0.0 0.0 13.3 0.0 0.0

Securities valuation 0.0 0.0 0.0 (10.3) 0.0

Hedging transactions valuation 0.0 0.0 0.0 0.0 112.6

Taxes offset directly against equity 0.0 0.0 0.0 2.1 (28.2)

Total income and expense for the year

recognized directly in equity 0.0 0.0 (770.9) (8.2) 84.4

Consolidated profit 0.0 0.0 0.0 0.0 0.0

Total income and expense for the year 0.0 0.0 (770.9) (8.2) 84.4

Increase in share capital

from company funds 1,241.0 (1,241.0) 0.0 0.0 0.0

Dividend 0.0 0.0 0.0 0.0 0.0

As at Dec 31, 2007 13,600.0 23,703.4 (1,112.1) (8.2) 570.4

2006 Attributable to shareholders in the parent company

Other reserves

Share Capital Currency Re-evaluation Hedging A

in k€ capital reserves translation reserve reserve

As at Jan 1, 2006 12,359.0 24,944.4 317.0 83.5 (267.6)

Currency differences 0.0 0.0 (661.4) 0.0 0.0

Total amounts of joint venture

recognized directly in equity 0.0 0.0 3.2 0.0 0.0

Securities valuation 0.0 0.0 0.0 (111.4) 0.0

Hedging transactions valuation 0.0 0.0 0.0 0.0 1,004.8

Acquisition of minority interest 0.0 0.0 0.0 0.0 0.0

Taxes offset directly against equity 0.0 0.0 0.0 27.9 (251.2)

Total income and expense for the year

recognized directly in equity 0.0 0.0 (658.2) (83.5) 753.6

Consolidated profit 0.0 0.0 0.0 0.0 0.0

Total income and expense for the year 0.0 0.0 (658.2) (83.5) 753.6

Dividend 0.0 0.0 0.0 0.0 0.0

As at Dec 31, 2006 12,359.0 24,944.4 (341.2) 0.0 486.0

56 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY


Accumulated Minority

results Subtotal interest Equity

15,039.0 52,487.2 10,884.4 63,371.6

(542.9) (1,327.1) (814.4) (2,141.5)

(0.1) 13.2 0.0 13.2

0.0 (10.3) 0.0 (10.3)

0.0 112.6 0.0 112.6

0.0 (26.1) 0.0 (26.1)

(543.0) (1,237.7) (814.4) (2,052.1)

15,140.4 15,140.4 4,787.5 19,927.9

14,597.4 13,902.7 3,973.1 17,875.8

0.0 0.0 0.0 0.0

(4,760.0) (4,760.0) (3,830.7) (8,590.7)

24,876.4 61,629.9 11,026.8 72,656.7

Accumulated Minority

results Subtotal interest Equity

5,317.6 42,753.9 11,991.2 54,745.1

(291.2) (952.6) (854.1) (1,806.7)

0.0 3.2 0.0 3.2

0.0 (111.4) 0.0 (111.4)

0.0 1,004.8 0.0 1,004.8

(261.8) (261.8) (695.9) (957.7)

0.0 (223.3) 0.0 (223.3)

(553.0) (541.1) (1,550.0) (2,091.1)

13,674.4 13,674.4 4,726.0 18,400.4

13,121.4 13,133.3 3,176.0 16,309.3

(3,400.0) (3,400.0) (4,282.8) (7,682.8)

15,039.0 52,487.2 10,884.4 63,371.6

57C O N S O L I D AT E D S TAT E M E N T S O F C H A N G E S I N E Q U I T Y


2007 2006

Note N° in k€ in k€

Profit before tax (EBT) 25,433.7 22,020.5

+ Depreciation 5,136.3 5,308.5

– Gains from the reversal of investment grants (87.5) (87.5)

–/+ Gains/losses from joint venture (4.8) 124.5

– Income from valuation of financial instruments (328.4) (531.5)

– Gains from the disposal of tangible assets,

intangible assets and securities (145.3) (105.1)

+ Interest expenses 5,490.9 3,621.4

– Interest income (958.1) (1,280.4)

–/+ Unrealized gains/losses from currency translation (1,470.1) 567.5

+/– Change in inventories (21,315.0) (23,801.9)

+/– Change in trade accounts receivable

and production contracts (1,579.6) (14,031.6)

+/– Change in other receivables 126.1 778.1

+/– Change in trade accounts payable/

advance payments received 12,611.4 11,616.1

+/– Change in other liabilities 6,178.7 (1,504.7)

+/– Change in provisions

(excluding income tax deferrals) (54.4) 428.5

= Cash earnings 29,033.9 3,122.4

– Interest paid (26) (5,685.0) (3,681.0)

+ Interest received (26) 786.0 782.0

+ Income tax received 2,249.0 0.0

– Income tax paid (2,237.0) (1,641.0)

= Net cash flow from operating activities 24,146.9 (1,417.6)

– Payments from the purchase of (interests in)

subsidiaries less purchased cash and cash equivalents

and from increase in share capital joint venture (26) (429.0) (1,876.2)

– Payments from the purchase of tangible and

intangible assets and securities (7,125.6) (11,444.4)

+ Proceeds from the sale of tangible and

intangible assets and securities 166.0 1,898.9

= Net cash flow from investing activities (7,388.6) (11,421.7)

– Dividends paid (26) (4,760.0) (3,400.0)

– Dividends paid to minority interest (3,830.7) (4,282.8)

+ Proceeds from interest-bearing liabilities 23,343.4 18,481.2

– Repayment of interest-bearing liabilities (29,091.8) (1,296.6)

= Net cash flow from financing activities (14,339.1) 9,501.8

Net change in cash and cash equivalents 2,419.2 (3,337.5)

+ Cash and cash equivalents

at the beginning of the period 3,945.6 7,596.6

+/– Adjustment from currency translation (50.3) (313.5)

Cash and cash equivalents

at the end of the period (26) 6,314.5 3,945.6

58 CONSOLIDATED CASH FLOW STATEMENT


2007

As at Currency As at

in k€ Jan 1, 2007 differences Allocations Consumption Reversals Dec 31, 2007

Short-term

Personnel provisions 542.1 0.0 100.0 (96.0) 0.0 546.1

Provisions for warranties 5,412.3 (99.6) 6,710.8 (5,196.2) (116.5) 6,710.8

Contract loss provisions 1,396.7 0.0 1,430.7 (828.3) (568.4) 1,430.7

Provision for income taxes 517.5 (20.3) 1,093.6 (447.3) 0.0 1,143.5

Other provisions 4,279.5 (16.0) 555.5 (2,259.9) (389.1) 2,170.0

12,148.1 (135.9) 9,890.6 (8,827.7) (1,074.0) 12,001.1

Long-term

Provisions for

long-service bonuses 1,969.3 0.0 4.3 (16.0) (0.6) 1,957.0

Other non-current provisions 153.0 0.0 12.0 (3.0) 0.0 162.0

2,122.3 0.0 16.3 (19.0) (0.6) 2,119.0

Total 14,270.4 (135.9) 9,906.9 (8,846.7) (1,074.6) 14,120.1

2006


in k€ Jan 1, 2006 differences Allocations Consumption Reversals Dec 31, 2006

Short-term

Personnel provisions 829.3 0.0 96.0 (383.2) 0.0 542.1

Provisions for warranties 4,976.7 (91.0) 5,418.4 (4,610.1) (281.7) 5,412.3

Contract loss provisions 2,004.1 (1.4) 1,396.7 (1,128.6) (874.1) 1,396.7

Provision for income taxes 543.7 (15.6) 474.2 (484.8) 0.0 517.5

Other provisions 3,869.2 (0.6) 1,330.8 (835.5) (84.4) 4,279.5

12,223.0 (108.6) 8,716.1 (7,442.2) (1,240.2) 12,148.1

Long-term

Provisions for

long-service bonuses 1,977.5 0.0 3.2 (11.4) 0.0 1,969.3

Other non-current provisions 439.5 0.0 19.5 0.0 (306.0) 153.0

2,417.0 0.0 22.7 (11.4) (306.0) 2,122.3

Total 14,640.0 (108.6) 8,738.8 (7,453.6) (1,546.2) 14,270.4

The schedule of provisions for severance payments and pensions is contained

under the item D.14. “Non-current provisions” in the Notes.

59SCHEDULE OF PROVIS IONS


2007 Cost of acquisition or production


in k€ Jan 1, 2007 differences Additions Disposals Adjustment Dec 31, 2007

I. Tangible assets

1. Land and buildings

a) Land value 2,803.5 (37.7) 141.0 0.0 0,0 2,906.8

b) Office and plant buildings 31,076.6 (658.7) 1,021.3 80.4 0.0 31,358.8

c) Outside facilities 2,916.3 0.0 71.5 11.3 0.0 2,976.5

d) Investments in non-owned buildings 2,332.0 (13.6) 144.2 16.6 0.0 2,446.0

2. Undeveloped land 1,967.6 0.0 627.4 0.0 0.0 2,595.0

3. Technical equipment and machinery 16,644.5 (266.8) 735.2 793.7 0.0 16,319.2

4. Other plant and office equipment 25,467.2 (121.2) 3,131.4 1,632.7 25.6 26,870.3

5. Advance payments made,

construction in progress 25.6 0.0 1,098.7 0.0 (25.6) 1,098.7

83,233.3 (1,098.0) 6,970.7 2,534.7 0.0 86,571.3

II. Intangible assets

Rights 3,753.9 (8.5) 135.6 134.1 0.0 3,746.9

3,753.9 (8.5) 135.6 134.1 0.0 3,746.9

III. Securities 508.0 0.0 19.3 0.0 0.0 527.3

IV. Joint venture 2,014.0 (0.1) 433.8 0.0 0.0 2,447.7

89,509.2 (1,106.6) 7,559.4 2,668.8 0.0 93,293.2

2006 Cost of acquisition or production


in k€ Jan 1, 2006 differences Additions Disposals Adjustment Dec 31, 2006

I. Tangible assets

1. Land and buildings

a) Land value 2,806.8 (42.8) 39.5 0.0 0.0 2,803.5

b) Office and plant buildings 24,207.3 (648.2) 4,672.5 76.7 2,921.7 31,076.6

c) Outside facilities 1,935.7 0.0 1,048.6 68.0 0.0 2,916.3

d) Investments in non-owned buildings 2,143.1 (11.4) 186.6 0.0 13.7 2,332.0

2. Undeveloped land 1,967.6 0.0 0.0 0.0 0.0 1,967.6

3. Technical equipment and machinery 15,989.4 (252.3) 1,192.1 284.7 0.0 16,644.5

4. Other plant and office equipment 23,368.0 (130.5) 3,734.4 1,541.3 36.6 25,467.2

5. Advance payments made,

construction in progress 2,972.0 0.0 25.6 0.0 (2,972.0) 25.6

75,389.9 (1,085.2) 10,899.3 1,970.7 0.0 83,233.3

II. Intangible assets

Rights 3,466.3 (9.2) 311.3 14.5 0.0 3,753.9

3,466.3 (9.2) 311.3 14.5 0.0 3,753.9

III. Securities 2,144.8 0.0 233.9 1,870.7 0.0 508.0

IV. Joint venture 2,135.3 3.2 (124.5) 0.0 0.0 2,014.0

83,136.3 (1,091.2) 11,320.0 3,855.9 0.0 89,509.2

60 MOVEMENT IN THE CONSOLIDATED ASSETS


Accumulated depreciation Net carrying values

As at Currency As at As at As at

Jan 1, 2007 differences Additions Disposals Dec 31, 2007 Dec 31, 2007 Dec 31, 2006

14.0 0.0 1.8 0.0 15.8 2,891.0 2,789.5

11,418.9 (277.0) 1,090.0 74.6 12,157.3 19,201.5 19,657.7

1,510.4 0.0 164.4 11.3 1,663.5 1,313.0 1,405.9

1,386.8 (1.5) 178.7 16.5 1,547.5 898.5 945.2

0.0 0.0 0.0 0.0 0.0 2,595.0 1,967.6

11,883.9 (193.8) 936.2 793.5 11,832.8 4,486.4 4,760.6

17,288.2 (85.2) 2,517.6 1,619.3 18,101.3 8,769.0 8,179.0

0.0 0.0 0.0 0.0 0.0 1,098.7 25.6

43,502.2 (557.5) 4,888.7 2,515.2 45,318.2 41,253.1 39,731.1

3,270.3 (8.6) 247.6 132.9 3,376.4 370.5 483.6

3,270.3 (8.6) 247.6 132.9 3,376.4 370.5 483.6

305.5 0.0 8.2 0.0 313.7 213.6 202.5

0.0 0.0 0.0 0.0 0.0 2,447.7 2,014.0

47,078.0 (566.1) 5,144.5 2,648.1 49,008.3 44,284.9 42,431.2

Accumulated depreciation Net carrying values

As at Currency As at As at As at

Jan 1, 2006 differences Additions Disposals Dec 31, 2006 Dec 31, 2006 Dec 31, 2005

12.2 0.0 1.8 0.0 14.0 2,789.5 2,794.6

10,679.8 (264.3) 1,045.1 41.7 11,418.9 19,657.7 13,527.5

1,412.4 0.0 163.6 65.6 1,510.4 1,405.9 523.3

1,206.5 (0.5) 180.8 0.0 1,386.8 945.2 936.6

0.0 0.0 0.0 0.0 0.0 1,967.6 1,967.6

11,380.5 (173.3) 953.1 276.4 11,883.9 4,760.6 4,608.9

16,305.4 (110.5) 2,508.7 1,415.4 17,288.2 8,179.0 7,062.6

0.0 0.0 0.0 0.0 0.0 25.6 2,972.0

40,996.8 (548.6) 4,853.1 1,799.1 43,502.2 39,731.1 34,393.1

2,838.3 (8.9) 455.4 14.5 3,270.3 483.6 628.0

2,838.3 (8.9) 455.4 14.5 3,270.3 483.6 628.0

543.8 0.0 0.0 238.3 305.5 202.5 1,601.0

0.0 0.0 0.0 0.0 0.0 2,014.0 2,135.3

44,378.9 (557.5) 5,308.5 2,051.9 47,078.0 42,431.2 38,757.4

61M O V E M E N T I N T H E C O N S O L I D AT E D A S S E T S


PRIMARY SEGMENT FOR 20071)

in k€ Austria USA Germany

External revenue 203,876.8 103,796.4 74,148.3

Internal revenue 39,289.6 15,683.9 18,028.2

Total revenue 243,166.4 119,480.3 92,176.5

Operating result (EBIT)

before result of joint venture 15,662.0 9,177.7 2,764.8

Segment assets 134,463.1 48,001.7 46,603.2

Segment liabilities 74,744.9 16,167.9 46,595.1

Investments 4,524.9 951.2 1,521.8

Depreciation 3,508.0 465.4 913.1

Other non-cash income/expenses (862.5) 0.0 579.3

Result of joint venture 4.8 0.0 0.0

Carrying amount joint venture 2,447.7 0.0 0.0

Employees (average) 753 417 360

PRIMARY SEGMENT FOR 20061)

in k€ Austria USA Germany

External revenue 148,722.3 96,904.2 76,479.8

Internal revenue 45,897.8 12,841.4 8,243.9

Total revenue 194,620.1 109,745.6 84,723.7

Operating result (EBIT)

before result of joint venture 11,038.4 8,392.3 2,655.4

Segment assets 123,039.9 38,373.2 40,016.2

Segment liabilities 59,827.8 14,525.0 39,387.2

Investments 8,930.9 901.9 1,228.7

Depreciation 3,620.2 563.9 829.9

Other non-cash income/expenses 887.3 0.0 383.3

Result of joint venture (124.5) 0.0 0.0

Carrying amount joint venture 2,014.0 0.0 0.0

Employees (average) 710 340 339

1) The segment reports refer to the revenues and results earned by the individual segments both on their respective local market and from export sales.

SECONDARY SEGMENT Revenue

in m€ 2007 2006

Vehicles 287.1 247.4

Fire fighting components 19.1 14.8

Equipment 43.5 45.4

Aerials 55.7 45.9

Service & spare parts 18.7 16.9

Others 2.0 1.6

Consolidation 0.0 0.0

Group 426.1 372.0

62 SEGMENT REPORTING


Spain Switzerland Asia Consolidation Group

26,272.1 6,471.5 11,563.2 0.0 426,128.3

2,661.2 72.6 9.3 (75,744.8) 0.0

28,933.3 6,544.1 11,572.5 (75,744.8) 426,128.3

2,258.9 217.2 976.9 (226.7) 30,830.8

18,628.4 5,313.0 6,185.3 (41,963.5) 217,231.2

16,194.9 3,050.7 1,282.4 (40,812.1) 117,223.8

52.1 10.8 45.5 0.0 7,106.3

37.2 125.6 87.0 0.0 5,136.3

0.0 0.0 0.0 0.0 (283.2)

0.0 0.0 0.0 0.0 4.8

0.0 0.0 0.0 0.0 2,447.7

14 15 34 0 1,593

Spain Switzerland Asia Consolidation Group

31,478.7 6,798.2 11,582.8 0.0 371,966.0

327.5 0.0 17.6 (67,328.2) 0.0

31,806.2 6,798.2 11,600.4 (67,328.2) 371,966.0

1,859.2 392.8 687.6 110.3 25,136.0

18,241.8 4,273.0 6,641.2 (36,391.6) 194,193.7

18,269.4 789.5 1,404.3 (35,376.9) 98,826.3

8.2 43.2 97.7 0.0 11,210.6

38.0 162.8 93.7 0.0 5,308.5

0.0 0.0 0.0 0.0 1,270.6

0.0 0.0 0.0 0.0 (124.5)

0.0 0.0 0.0 0.0 2,014.0

13 15 35 0 1,452

Segment assets Investments

2007 2006 2007 2006

168.3 148.2 4.9 7.2

10.2 7.3 0.5 1.7

10.3 9.8 0.0 0.2

36.2 31.8 0.9 0.9

0.2 0.3 0.0 0.0

5.3 5.0 0.8 1.2

(13.3) (8.2) 0.0 0.0

217.2 194.2 7.1 11.2

63S E G M E N T R E P O R T I N G


NOTES

A. GENERAL REMARKS

1. General information and basis of preparation

The Rosenbauer Group is an internationally active corporation with an Austria-based parent company, Rosenbauer InternationalAG. Its main focus is on the production of fire fighting vehicles, the development and manufacture of fire fighting componentsand the equipping of both vehicles and their crews. The Group’s head office is located at Paschinger Strasse 90, 4060 Leonding,Austria. The company is noted at the Linz Provincial Court under the company register number FN 78543 f.

These consolidated financial statements for Rosenbauer International AG and its subsidiaries for the financial year 2007 corre-spond with the International Financial Reporting Standards (IFRSs) as accepted in the EU and are to be approved for publicationby the Supervisory Board, which will probably convene in April 2008.

The consolidated financial statements are prepared in thousands of euro (k€) and unless expressly stated, this also applies tothe figures quoted in the Notes.

The consolidated financial statements have been prepared on a historical cost basis, except for investment properties, land andbuildings, derivative financial instruments and available-for-sale investments that have been measured at fair value. The carry-ing values of recognized assets and liabilities that are hedged items in fair value hedges, and are otherwise carried at cost, areadjusted to record changes in the fair values attributable to the risks that are being hedged.

2. Main effects of new accounting standards

In general, the accounting and valuation methods applied in 2007 correspond with those employed in the preceding year. Inaddition, the Group utilized new/revised standards which are binding for the financial year commencing January 1, 2007.

In August 2005, a change was made to IAS 1 (Presentation of Financial Statements), relating to disclosures of company capi-tal. Accordingly, disclosures concerning capital management must be made in the Notes for financial years beginning on or afterJanuary 1, 2007. The disclosures are reported under the item D.28. “Capital management”.

August 2005 also saw the publication by the IASB of IFRS 7 (Financial Instruments: Disclosures), which is to be employed forthe financial years beginning on or after January 1, 2007. This contains new stipulations concerning disclosures relating to thesignificance of financial assets and debts for the asset and income situation of the company. In addition, IFRS 7 requires disclo-sures concerning the reporting of risks which are connected to financial assets and debts. IFRS 7 broadens the previous dis-closures concerning financial instruments and presents them in classes and IAS 39 categories.

IFRIC 8 requires the use of IFRS 2 to be applied to any transaction where the company cannot specifically identify some or allof the goods or services received. This change had no effect on the Group’s asset, financial and income situation.

64


IFRIC 9 stipulates that at the time of the conclusion of a contract concerning a structured instrument, a company must alwaysjudge as to whether an embedded derivative exists. As within the Group there are no embedded derivatives that are to be sep-arated from the basis contract, the use of this interpretation has no effect on the Group’s asset, financial and income situation.

3. Future changes in reporting and valuation methods due to new accounting standards

The following standards were not used prematurely. At present, it is assumed that application will not have a material influenceon the Group’s asset, financial and income situation.

In November 2006, IFRS 8 (Operating Segments) was issued, which will replace IAS 14 (Segment Reporting), the standardemployed previously for segment reporting. The change foresees that the segment information to be disclosed derive from therelevant information used for the internal assessment of segment performance.

In July 2006, IFRIC 10 (Interim Financial Reporting and Impairment) was issued, which is to be used for the financial years com-mencing on or after November 1, 2006. This interpretation stipulates that the impairment of business values or goodwill recog-nized as an expense in interim financial statements, financial assets in equity instruments and financial assets reported underfinancial assets recognized at the cost of acquisition, cannot be revoked in subsequent interim and annual financial statements.This alteration to the accounting and valuation methods had no effect on the Group’s asset, financial and income situation asat December 31, 2007 and December 31, 2006.

IFRIC 11 (Inter-Group Transactions and Transactions with Own Shares Pursuant to IFRS 2), which was published in November2006, deals with the question as to how IFRS 2 is to be applied to share-based payment transactions under which companyequity instruments or the equity instruments of another company within the Group are allowed. IFRIC 11 has no effect on theconsolidated financial statements, as the related IFRS 2 is not used within the Group.

In June 2007, IFRIC issued the IFRIC 13 (Customer Loyalty Programmes) for the accounting limitations of expenses and the report-ing of income derived from customer loyalty programs. This interpretation is to be used initially for financial years commencingon or after July 1, 2008.

In July 2007, IFRIC 14 was issued (IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Inter-action), which is to be employed for financial years commencing on or after January 1, 2008. This interpretation regulates howthe asset ceiling stipulation is to be applied to planned assets which exceed the level of pension obligations.

B. CONSOLIDATION PRINCIPLES

1. Scope of consolidation

The companies included within the scope of consolidation are reported in the subsidiaries table on page 89.

Subsidiaries are defined as companies over which the parent company exerts a dominant influence with regard to financial andbusiness policy. A dominant influence is given when the parent company holds more than half of the voting rights in a company.A dominant influence is also given when due to an agreement between one shareholder and others, the possibility exists to dis-pose over more than half of the voting rights.

65N O T E S


For all subsidiaries over which the parent company holds directly or indirectly, not more than half of the voting rights, thereexists the contractual possibility of exerting a dominant influence.

Accordingly, subject to the application of IAS 27, the scope of consolidation includes 2 domestic and 17 international companies,which are under the legal and effective control of Rosenbauer International AG.

The initial inclusion of a subsidiary takes place at the point in time when control over the assets and business activities of thecompany actually passes to the respective parent company. All the subsidiaries included are fully consolidated.

A joint venture is a contractual agreement in which two or more parties undertake an economic activity subject to shared manage-ment. The equity method is applied to the investment for inclusion in the balance sheet and it is initially reported at the cost ofacquisition. Subsequently, the carrying value of the investment rises or falls in accordance with the results of the joint venturecompany. The share of the Group in the profits and losses of the joint venture from the date of purchase are contained in theincome statement.

Since August 26, 2005, one joint venture (Rosenbauer YongQiang Fire Fighting Vehicles Ltd., China) is included in the consoli-dated financial statements.

Number of fully Number of companies

consolidated companies consolidated at equity

2007 2006 2007 2006

As at January 1 20 20 1 1

Acquisitions 0 0 0 0

Foundations 0 1 0 0

Disposals 0 1 0 0

Mergers 0 0 0 0

As at December 31 20 20 1 1

2. Methods of consolidation

Capital consolidation of the subsidiaries taken over takes place on the basis of the purchase method through the netting of theacquisition costs of the acquired interests against pro rata equity at the time of purchase.

Following a repeat assessment of identifiable assets, liabilities and contingent liabilities, in accordance with IFRS 3, a liabilities-side difference is recognized immediately in the income statement. The goodwill derived from a purchase price allocation is notdepreciated annually, but subjected to a value impairment test at the end of each year. As at December 31, 2007, no goodwillexisted. The annual financial statements of the companies included in the consolidated financial statements are drawn up onthe basis of uniform accounting and valuation standards. The individual financial statements of the companies included are pre-pared on the closing date of the consolidated financial statements. All receivables and liabilities, expenses and income derivedfrom clearing between companies included in the scope of consolidation are eliminated. Interim results derived from assettransfers within the Group are also eliminated.

Minority interests represent the portion of profit or loss and net assets not hold by the Group and are presented separately inthe income statement and within equity in the consolidated balance sheet, separately from parent shareholders’ equity. Acquisi-tions of minority interests are accounted for using the entity concept method, whereby the difference between the considerationand the carrying amount of the share of the net assets acquired is netted against reserves.

66 N O T E S


3. Currency translation

The annual financial statements of the companies included in the consolidated financial statements reporting in foreign curren-cies are translated into euro using the functional currency concept in accordance with IAS 21. In the case of all companies, thefunctional currency in which they complete their independent financial, business and organizational activities is the respectivenational currency. Therefore, all assets and debts are translated at the respective mean exchange rate on the balance-sheetdate, expenses and income at mean annual rates.

Differences between the currency translation of asset and liability items in the current and preceding year, as well as transla-tion differences between the consolidated balance sheet and the consolidated income statement, are recognized at fair valuein the income statement under equity.

The translation difference derived from the adjustment of equity as compared to initial consolidation is netted against the Groupreserves. During the year under review, reporting date translation differences of –2,141.5 k€ (2006: –1,806.7 k€) are recognizedat fair value in the income statement under equity.

The exchange rates established for currency translation demonstrate the following shifts:

Closing rate Annual mean rate

in € Dec 31, 2007 Dec 31, 2006 Dec 31, 2007 Dec 31, 2006

100 US dollar 67.9348 75.8725 72.8637 79.5603

100 Swiss franc 60.4230 62.2123 60.8334 63.5062

100 Singapore dollar 47.3037 49.5295 48.4422 50.1449

100 Brunei dollar 47.3037 49.5295 48.4422 50.1449

100 Chinese renminbi 9.3058 9.7339 9.5898 9.9879

100 South African rand 10.0010 10.8578 10.3711 11.6956

C. REPORTING AND VALUATION METHODS

The principle of uniform reporting and valuation is maintained by a directive which applies throughout the Group.

Assets

Tangible assets are valued at the cost of acquisition or production, less depreciation, accumulated value impairment, or thelower attainable amount. Depreciation is calculated using the linear method and takes place at the time an asset becomes oper-ational. The cost of acquisition or production derives from the amount of cash or cash equivalents paid for the acquisition orproduction, or from the market value or other form of payment at the time of acquisition or production.

The following depreciation is employed:Office and plant buildings 2.00% –10.00%

Technical equipment and machinery 10.00% –25.00%

Other plant and office equipment 10.00% –33.33%

The residual carrying values, the depreciation method and service life are examined on each balance-sheet date and adjustedwhere required.

67N O T E S


As at December 31, 2007 and 2006, there were no leased assets for which in the main all the risks and chances derived fromthe possession of an asset are transferred (finance leasing), as well as there were no investment properties retained for thepurpose of obtaining rent or value added. Borrowing costs are recognized as an expense when incurred.

Intangible assets are valued at the cost of acquisition less depreciation. The rates of depreciation lie between 25.0% and 33.3%.Intangible assets with an undefined service life are not subject to depreciation, but are submitted to an annual impairment testas at December 31. Depending on every single case, the examination will be implemented for every single asset or at the cashgenerating unit level. Intangible assets with indefinite useful lives are tested for impairment annually as of December 31. Depre-ciation for intangible assets is included under the item “Depreciation on intangible and tangible assets”.

Pursuant to IAS 38 (Intangible Assets), research costs cannot be capitalized and are thus reported in their entirety in the incomestatement (2007: 7,038.0 k€; 2006: 7,434.0 k€). Development costs may only be capitalized, if the prerequisite conditions existin accordance with IAS 38. As at December 31, 2007 no development costs are capitalized.

In the case of asset impairments, other than financial assets where the recoverable amount (which corresponds with the higherof the cash value or the value in use), or the net selling price is below the respective carrying value, an impairment of the recover-able amount takes place in accordance with IAS 36 (Impairment of Assets). If the reasons for an impairment undertaken in thepreceding year no longer exist, a corresponding write-up is made. Assets are written off when the contractual rights to the cashflow relating to the respective asset expire or cease.

If the recoverable amount for an asset cannot be identified, the asset is included in a Cash Generating Unit (CGU) and subjectedto an impairment test, whereby as a rule, the value in use is used as the recoverable amount. In the Rosenbauer Group, eachof the legally autonomous company units forms a CGU.

A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine theasset’s recoverable amount since the last impairment loss was recognized. In this case, the carrying amount of the asset is in-creased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined,net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in theincome statement.

The Group assesses at each balance-sheet date whether a financial asset or group of financial assets is impaired.

If there is objective evidence that an impairment loss on loans and receivables carried at amortized cost has been incurred, theamount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated futurecash flows (excluding expected future credit losses that have not been incurred) discounted at the financial asset’s original effec-tive interest rate (i.e. the effective interest rate computed at initial recognition). The carrying amount of the asset is reducedthrough use of an allowance account. The amount of the loss shall be recognized in the income statement.

68 N O T E S


The Group first assesses whether objective evidence of impairment exists individually for financial assets that are individuallysignificant and individually or collectively for financial assets that are not individually significant. If it is determined that no objec-tive evidence of impairment exists for an individually assessed financial asset, whether significant or not, the asset is includedin a group of financial assets with similar credit risk characteristics and that group of financial assets is collectively assessedfor impairment. Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recog-nized are not included in a collective assessment of impairment.

A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognizedwhen:

a) the rights to receive cash flows from the asset have expired;

b) the Group retains the right to receive cash flows from the asset but has assumed an obligation to pay them in full withoutmaterial delay to a third party under a pass through arrangement (IAS 39.19);

c) the Group has transferred its rights to receive cash flows from the asset and either has transferred substantially all the risksand rewards of the asset, or has neither transferred nor retained substantially all the risks and rewards of the asset, but hastransferred control of the asset.

Loans and receivables are valued at amortized cost using the effective interest method, less allowance for impairment. Profitsand losses are reported under the result for the period, when the loans and receivables are written off or are impaired. Receiv-ables in foreign currency are valued at the mean exchange rate on the balance-sheet date.

In general, derivative financial instruments relating to hedge accounting are reported at market value on a fair value basis inline with the hedge accounting stipulations of IAS 39 (Financial Instruments). Should the hedge prove ineffective, recognitionin the income statement occurs. Removal from the balance sheet takes place when the power of disposition is lost. Hedgingpolicy as well as the financial instruments existent on the balance-sheet date are described in detail under the item D.29. “Riskmanagement”.

Securities fall into the available-for-sale category. After initial measurement, available-for-sale financial assets are measuredat fair value with unrealized gains or losses being recognized directly in equity in the net unrealized gains reserved. When theinvestment is disposed of, the cumulative gain or loss previously recorded in equity is recognized in the income statement. Inter-est earned or paid on the investments is reported as interest income or expense using the effective interest rate.

The evaluation of trade accounts receivable takes place at the cost of acquisition. Value impairments are taken into accountin accordance with IAS 39. Impaired debts are derecognized when they are assessed as uncollectible. Other receivables aregenerally valued at the continued costs of acquisition. In addition to other receivables, they consist of both derivative financialinstruments with a relationship to hedging as well as derivative financial instruments for which hedge accounting is inapplicable.

69N O T E S


The cash and cash equivalents reported under the item “Cash and short-term deposits”, such as cash and bank balances arevalued at the market value on the reporting date.

The fair value of financial assets which are traded on organized markets is determined by the market price (quotation) on thebalance-sheet date.

Deferred tax assets are to be carried for all taxable temporary differences between the values in the IFRS consolidated balancesheet and the taxation value. In accordance with IAS 12, these deferrals are calculated using the balance-sheet liability method.Deferred income tax liabilities are recognized for all taxable temporary differences, except where the deferred income tax liabilityarises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and,at the time of the transaction, affects neither the accounting profit nor taxable profit.

Furthermore, no deferred income tax liabilities are recognized in respect of taxable temporary differences associated with invest-ments in subsidiaries, associates and interests in joint ventures, where the timing of the reversal of the temporary differencescan be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recoveredfrom or paid to the taxation authorities. Current income tax relating to items recognized directly in equity is recognized in equityand not in the income statement.

Asset-side tax deferrals on loss carryforwards are formed to the extent to which consumption within a determinable period canbe anticipated.

The carrying amount of deferred income tax assets is reviewed at each balance-sheet date and reduced to the extent that it isno longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized.Unrecognized deferred income tax assets are reassessed at each balance-sheet date and are recognized to the extent that ishas become probable that future taxable profit will allow the deferred tax asset to be recovered.

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recoveredfrom or paid to the taxation authorities.

The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance-sheet date.

Inventories are valued at the cost of acquisition or production or at the lower net realizable value (market price) on the report-ing date. The calculation of the cost of acquisition or production for identical assets takes place using the weighted averagecost method or similar procedures. Production costs only include directly attributable expenses and pro rata overheads subjectto the assumption of a normal use of capacity. Interest for loans is not reported.

Production contracts, which allow a reliable profit estimate, are valued at pro rata selling prices (percentage of completionmethod). The estimate of progress is made according to the ratio of actual costs to anticipated overall expenditure (cost to cost).Should a reliable profit estimate for a production contract not be possible, the order proceeds are only to be reported to theamount of the order costs which can probably be recovered. If it is likely that the entire order costs will exceed the entire orderproceeds, then the anticipated loss is immediately recognized as an expense.

70 N O T E S


Liabilities

a) PENSIONS AND OTHER POST EMPLOYMENT BENEFITS

Under national law, in the case of dismissal or upon attainment of retirement age, employees of Austrian corporations with entrypoint until December 31, 2002 are entitled to a one-off severance payment. The amount of this payment is dependent on thenumber of years of service and remuneration at the time of severance. The provisions for severance payments are calculatedin a uniform manner on the reporting date using the project unit credit method, an interest rate of 5.0% p.a. (2006: 4.75% p.a.)and a dynamic rate of 3.5% p.a. (2006: 3.5% p.a.) for future increases in remuneration. If the balance of the accumulated non-recognized actuarial gains and losses at the end of the previous reporting period exceeds 10% of the cash value of the obligation(corridor method), this excess has to be allocated by the expected average remaining working lives of the employees participat-ing in that plan.

Past service cost has to be recognized over the period until the benefits concerned are vested. As long as benefits concernedare vested immediately after introduction of or change in a pension plan, past service cost has to be recognized immediately inthe income statement.

Apart from invalidity and mortality rates (basis: Pagler & Pagler actuarial tables) and the end of the employment relationshipupon attainment of the age of retirement, an annual rate of 1.5% is applied for premature terminations of employment with aseverance payment entitlement. The calculation is based on the individual age of retirement according to the Austrian pensionreform in regard of a gradual approach of the age of retirement.

In addition, fluctuation deductions in line with the number of years of service were also taken into account. These amounts to5% in the first year of service, 2% in the second year and 0.25% in the third to fifth year. Appropriate provisions calculated onthe basis of actuarial principles counterbalance payment obligations. The provision for performance-related pension schemesreported in the balance sheet corresponds with the present value of the defined benefit obligation (DBO) on the balance-sheetdate, adjusted by accumulated unrecognized actuarial gains and losses and unrecognized service expenses requiring subsequentoffsetting.

In the case of existing pension entitlements established within the framework of company agreements, payments are calculatedon the basis of the eligible years of service in the form of a fixed annual amount. This fixed sum is modified upon retirementaccording to pensionable individual income. Current pensions are subject to regular examination with regard to indexing and arepaid fourteen times annually.

The pension’s obligation is established on the basis on the following parameters:Remuneration Pension

Interest rate increase increase

Austria 5.0% 3.5% 3.0%

Germany 5.0% 1.5% 1.5%

Apart from the performance-related system, workers in Austria, who entered employment beginning with January 1, 2003, haveaccess to a contribution-related pension’s scheme. A mandatory amount of 1.53% of gross remuneration is to be paid into anemployee pension fund, which is reported under “Personnel expenses”. Details are contained in the Notes under the item D.21.“Personnel expenses, corporate bodies and employees”. Accordingly, the creation of a provision for these employees is not given.

71N O T E S


b) OTHER NON-CURRENT/CURRENT LIABILITIES

The other provisions carried under the non-current and current liabilities cover all the risks recognizable up to the reporting datederived from uncertain liabilities and are recognized to an amount determined as the most probable in a careful examination ofthe facts.

Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursementis recognized as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision ispresented in the income statement net of any reimbursement. If the effect of the time value of money is material, provisions arediscounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting isused, the increase in the provision due to the passage of time is recognized as a finance cost.

Liabilities are reported at the cost of acquisition (corresponds with the fair value). Liabilities in foreign currency are valued atthe mean foreign exchange rate on the reporting date.

A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expired. Where an exist-ing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existingliability are substantially modified, such an exchange or modification is treated as a derecognizing of the original liability and therecognition of a new liability, and the difference in the respective carrying amounts is recognized in the income statement.

Government grants are recognized where there is a reasonable assurance that the grant will be received and all attaching con-ditions will be complied with. When the grant relates to an expense item, it is recognized as income over the period necessaryto match the grant on a systematic basis to the costs that it is intended to compensate. Where the grant relates to an asset, itis set up as deferred income. Where the Group receives non-monetary grants, the asset and that grant are recorded at nominalamounts and the grant is released to the income statement over the expected life of the relevant asset by equal annual install-ments.

In accordance with IAS 20, long-term funding provided by research support funds, which contains an interest subsidy, is treatedas public funding, why the interest advantage does not require qualification.

Foreign currency translation

Monetary items in foreign currencies are translated into the functional currency on the balance-sheet date at the exchange rateon the closing date. Non-monetary items reported according to the cost of acquisition method are reported unchanged at theexchange rate on the date of initial booking. Currency differences derived from the translation of monetary items are recognizedin the income statement. All differences are taken to profit or loss with the exception of differences on foreign currency borrow-ings that provide a hedge against a net investment in a foreign entity.

Income

The proceeds from the sale of products and goods are realized at the point in time at which the risks and chances are trans-ferred to the purchaser. Gains on interest are realized on a pro rata temporis basis taking into account the effective interest onthe asset. Dividends are reported with the origination of a legal entitlement. Rental income is recognized on a straight line basisover the lease terms. Income realization for long-term orders going beyond the reporting date occurs subject to the percentageof completion method.

72 N O T E S


Estimates

To a certain extent, the compilation of the consolidated financial statements requires the use of estimates and assumptions,which can influence the values reported for assets and payables, the other liabilities on the reporting date and income and ex-penses for the period under review. The effective future values can deviate from the estimates.

The most important future-related assumptions, which could result in significant risk in the form of a material adjustment of thecarrying values of assets and liabilities in the coming financial year, are explained subsequently.

The Group checks for the value impairment of existing goodwill at least once annually. Estimates are made of the probable futurecash flow from the cash generating units to which the goodwill is allocated. In addition, an appropriate interest rate (2007: 6.5%;2006: 6.0%) is selected in order to determine the cash value of this cash flow. As at December 31, 2007, there was no goodwill.

The Rosenbauer Group employs actuarial tables for the calculation of provisions for pensions. The calculations are based onassumptions concerning the discount rate, as well as increases in wages, salaries and pensions. The discount rate is orientedtowards specific, first class industrial bonds. The balance-sheet provision as at December 31, 2007 amounted to 13,352.5 k€(2006: 12,501.7 k€) for severance payments and 4,635.4 k€ (2006: 4,764.4 k€) for pensions. More detailed information concern-ing the provision for pensions is contained in the description of the accounting and valuation methods, as well as the calcula-tions contained under the item D.14. “Non-current provisions”.

The basis for the capitalization of asset-side tax deferrals is provided by both the business plans of the subsidiaries and tax plan-ning calculations. If, on the basis of these forecasts, an existing loss carryforward will not be consumed within an appropriateperiod of three to five years, this loss carryforward is not capitalized. The amount of the non-capitalized loss carryforwards isreported under item the D.5. “Deferred tax”.

D. NOTES TO THE CONSOLIDATED BALANCE SHEET AND INCOME STATEMENT

1. Tangible and intangible assets

The assets combined in the consolidated balance sheet and the related developments are shown in the movement in the con-solidated assets table on pages 60 to 61. As in the preceding year, the tangible assets contain no rented goods or real estateheld as a financial investment.

The future expenses from operating leasing contracts, which exclusively involve tangible assets, were structured as follows:

in k€ Dec 31, 2007 Dec 31, 2006

In the following year 1,259.7 1,359.2

In the following 1 to 5 years 4,174.9 4,373.0

Over 5 years 2,124.9 2,232.0

Payments from operative leasing agreements which are carried in the result for the period amounted to 1,232.4 k€ (2006:1,501.4 k€).

The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at inceptiondate and requires an appraisal of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assetsor whether the arrangement conveys a right to use the asset.

73N O T E S


As at December 31, 2007, the order liability for tangible assets in the Group amounted to 1,585.1 k€ (2006: 350.7 k€). Duringthe 2007 financial year, no impairments were undertaken on tangible and intangible assets (2006: 0.0 k€). There were also nowrite-ups (2006: 0.0 k€).

Public subsidies were granted for investments in tangible assets. As at December 31, 2007, a subsidy of 319.8 k€ (2006: 407.3 k€)is reported on the liabilities-side under “Other liabilities”. The subsidies are not to be repaid.

Construction in progress amounting to 1,098.7 k€ (2006: 25.6 k€) is reported in the movement in the consolidated assets table.In the main this relates to capacity enlargements (construction of a production hall in the USA, a new laser cutting machine inAustria), which will become operational in 2008.

No tangible assets were pledged as hedging for liabilities (2006: 2,488.5 k€). There are no limitations with regard to rights ofdisposal.

The intangible assets contain software licenses and rights in the amount of 370.5 k€ (2006: 483.6 k€). The depreciation of thefinancial year 2007 amounted to 247.6 k€ (2006: 455.4 k€). As at December 31, 2007 there is no goodwill as in the precedingyear.

2. Securities

The securities reported in the consolidated financial statements in the amount of 213.6 k€ (2006: 202.5 k€) are in the available-for-sale category.

3. Joint venture

The joint venture founded in China in 2005 (Rosenbauer YongQiang Fire Fighting Vehicles Ltd.) was reported in the consolidatedfinancial statements at equity as follows:

Development of the value of the investment

in k€ 2007 2006

As at January 1 2,014.0 2,135.3

Capital payment 429.0 0.0

Share of profit/loss 4.8 (124.5)

Currency differences (0.1) 3.2

As at December 31 2,447.7 2,014.0

Financial information

in k€ 2007 2006

Non-current assets 2,056.2 2,118.3

Current assets 3,220.6 2,547.4

Current liabilities 3,064.7 2,802.8

Income 2,352.4 3,070.6

Expenses 2,347.6 3,195.1

As at December 31, 2007, capital obligations in favor of the joint venture in the amount of 0.4 m USD exist.

74 N O T E S


4. Non-current receivables

in k€ Dec 31, 2007 Dec 31, 2006

Other receivables 1,370.9 1,221.0

In 2007, the other receivables with a period to maturity of between one and five years totaled 1,264.2 k€ (2006: 1,221.0 k€).Other receivables with a period to maturity in excess of five years totaled 106.7 k€ (2006: 0.0 k€).

5. Deferred tax

Differences between the values in the consolidated tax and IFRS balance sheet derive from the following difference amountsrespectively show the following deferred taxes:

Deferred tax assets/liabilites

2007 2006

in k€ Asset-side Liabilities-side Asset-side Liabilities-side

Open one-seventh depreciation

purs. §12 (3) Austrian Corporation Tax Act 316.5 0.0 1,440.0 0.0

Foreign exchange forwards and securities

(recognized at fair value in equity) 2.9 195.1 7.1 169.1

Foreign exchange forwards and securities

(recognized in the income statement) 9.5 235.3 20.7 185.0

Valuation differences of receivables 57.8 38.2 37.4 58.6

Income derived from production contracts 0.0 658.2 0.0 880.8

Capitalized loss carryforwards 559.8 0.0 2,890.3 0.0

Special tax allowances 0.0 204.3 0.0 210.1

Valuation differences

of other provisions and payables 2,307.3 0.0 2,345.0 0.0

Others 268.6 269.6 286.0 310.2

Asset-side/Liabilities-side deferred tax 3,522.4 1,600.7 7,026.5 1,813.8

Netting of asset-side and

liabilities-side deferred tax (940.3) (940.3) (1,180.9) (1,180.9)

2,582.1 660.4 5,845.6 632.9

Asset-side tax deferrals of 1,158.2 k€ (2006: 2,379.5 k€) for loss carryforwards are not reported as their effectiveness as defini-tive tax relief is insufficiently secured.

6. Inventories

in k€ Dec 31, 2007 Dec 31, 2006

Raw materials and supplies 25,040.5 11,886.1

Chassis 25,024.6 22,821.8

Work in progress 33,410.7 30,976.4

Finished goods 12,047.3 12,440.0

Goods in transit 4,787.7 2,580.5

Advance payments made 1,864.5 155.5

102,175.3 80,860.3

The inventories contain accumulated value impairments amounting to 4,596.7 k€ (2006: 3,599.5 k€). The amount of 1,846.1 k€concerning the value impairment in the current year is included in the income statement under “Expenses for materials andservices”. There were no value write-ups in the current financial year (2006: 0.0 k€) and no inventories were pledged as hedgingfor liabilities. The balance-sheet value of the inventories reported corresponds with the lower of value at the cost of acquisitionor production and net selling price.

75N O T E S


7. Production contracts

in k€ Dec 31, 2007 Dec 31, 2006

Production contracts

costs up to the balance-sheet date 25,321.3 23,988.2

gains up to the balance-sheet date 3,151.4 4,037.1

advance payments received (4,086.0) (4,315.9)

24,386.7 23,709.4

All production contracts have a residual period of less than one year. Sales revenues include sales from production contractsin the amount of 1,895.0 k€ (2006: 12,735.4 k€).

8. Current receivables

in k€ Dec 31, 2007 Dec 31, 2006

Trade accounts receivable 42,761.4 42,101.2

Receivables from financial instruments 1,665.8 1,290.4

Receivables from taxes 672.5 2,405.4

Other receivables 2,575.0 2,391.2

47,674.7 48,188.2

As at December 31, 2007, the value impairments on the trade accounts receivable, as well as other receivables totalled 729.1 k€(2006: 1,015.5 k€). The value impairments of the current year are reported in the amount of 400.9 k€ as other expenses as spe-cific allowance.

The value impairments on receivables relate exclusively to the trade receivables reported under the current receivables. No impair-ments occurred with regard to the other financial instruments.

in k€ 2007 2006

Value impairments as at January 1 1,015.5 1,227.9

Allocations 400.9 365.5

Consumption (361.1) (468.7)

Reversals (326.2) (109.2)

Value impairments as at December 31 729.1 1,015.5

The following table shows the expenses for the complete write-off of receivables as bad debts, as well as income from the entryof written-off receivables.

in k€ Dec 31, 2007 Dec 31, 2006

Expenses for the writing-off of receivables 423.3 302.4

Income from the entry of written-off receivables 2.5 0.0

9. Cash and short-term deposits

in k€ Dec 31, 2007 Dec 31, 2006

Cash and short-term deposits 6,314.5 3,945.6

On the reporting date, there were no drawing restrictions on the amounts carried under this item.

76 N O T E S


10. Equity

At the 15th Ordinary General Shareholders’ Meeting, a resolution was passed regarding an increase in share capital from companyfunds of 1,241,000 €, from 12,359,000 € to 13,600,000 € by means of the conversion of the corresponding part-amount of thecommitted capital reserve without the issue of new shares.

In addition, a resolution concerning a share split in a ratio of 4 :1 was proposed, whereby the number of shares was increasedto 6,800,000 and each share bearing a proportionate amount of share capital of 2.00 €. The resolution was also approved bymeans of the appropriate change to the corporate articles.

The authorization to purchase own shares pursuant to §65 Para.1 Clause 8 AktG (Austrian Stock Corporation Act) was extendedby a further 18 months from the date of the resolution.

The capital reserve derives from the new shares issued in 1994 via the Vienna Stock Exchange and constitutes a committedcapital reserve which is not available for the payment of dividends. The individual financial statements of the company preparedaccording to Austrian Corporate Code (UGB) provide the basis for the proposal for the distribution of profits.

The item “Other reserves” contains the offset item for currency translation, the revaluation and hedging reserves. The offset itemfor currency translation carries the difference recognized at fair value derived from the adjustment of equity as compared toinitial consolidation. In addition, this item also contains the differences from currency translations relating to asset and liabilityitems, as compared to the translation of the preceding year, as well as translation differences between the consolidated balancesheet and income statement.

The change in the hedging reserve derives from the fair value valuation of currency futures subject to IAS 39.

Details concerning the reserves can be obtained from the consolidated statements of changes in equity table on pages 56 to 57.

11. Minority interest

The item “Minority interest” contains the interests of third parties in the equity of Group subsidiaries. In 2007, 3,830.7 k€ (2006:4,282.8 k€) was distributed among minority shareholders in Group subsidiaries. Third party shareholders exist with regard tothe following subsidiaries:

2007 2006

Rosenbauer Española S.A., Madrid, Spain 37.89% 37.89%

Rosenbauer America LLC., Lyons, USA 50.00% 50.00%

Eskay Rosenbauer Sdn Bhd, Brunei 20.00% 20.00%

12. Non-current interest-bearing liabilities

This item contains all interest-bearing liabilities to banks and the Austrian Research Promotion Fund with a remaining period tomaturity of over one year. Details concerning financial liabilities are contained under the item D.29. “Risk management”.

in k€ Dec 31, 2007 Dec 31, 2006

Liabilities to banks and the

Austrian Research Promotion Fund 13,533.2 13,761.2

77N O T E S


13. Other non-current liabilities

in k€ Dec 31, 2007 Dec 31, 2006

Other non-current liabilities 1,997.0 1,453.9

In 2007, the non-current liabilities mainly relate to export financing.

14. Non-current provisions

a) PROVISIONS FOR SEVERANCE PAYMENTS

Details concerning the provisions for severance payments are contained in the description of the accounting and valuation methods.The transfer of cash values to the provisions for severance payments reported in the consolidated balance sheet is structuredas follows:

in k€ 2007 2006

Cash value of the obligation 14,350.2 13,398.2

Not yet recognized actuarial losses 997.7 896.5

Provision as at December 31 13,352.5 12,501.7

in k€ 2007 2006

Provision as at January 1 12,501.7 11,752.3

Service expense 646.0 633.9

Interest expense 648.8 564.9

Recognized actuarial losses 4.0 4.5

Ongoing payments (448.0) (453.9)


The cash value of the obligation for the current year as well as the preceding years is structured as follows:

in k€ 2007 2006 2005 2004 2003

Cash value of the obligation

as at December 31 14,350.2 13,398.2 12,271.8 11,938.7 11,587.1

The experience-related adjustments of the cash value of the obligation in 2007 amounted to –3.0% (2006: –5.6%).

b) PROVISIONS FOR PENSIONS

Details concerning the provisions for pensions are contained in the description of the accounting and valuation methods. Thetransfer of cash values to the provisions for pensions reported in the consolidated balance sheet is structured as follows:

in k€ 2007 2006

Cash value of the obligation 4,834.8 4,979.1

Not yet recognized actuarial losses 199.3 214.7


78 N O T E S


in k€ 2007 2006

Provision as at January 1 4,764.4 4,741.9

Service expense 37.5 40.8

Interest expense 229.9 231.9

Recognized actuarial losses (127.2) 27.3

Ongoing payments (269.1) (277.5)


The cash value of the obligation for the current year as well as the preceding years is structured as follows:

in k€ 2007 2006 2005 2004 2003

Cash value of the obligation

as at Dec 31 4,834.8 4,979.1 5,311.2 4,790.9 4,620.5

The experience-related adjustments of the cash value of the obligation in 2007 amounted to 0.0% (2006: 4.8%).

c) OTHER NON-CURRENT PROVISIONS

in k€ Dec 31, 2007 Dec 31, 2006

Provisions for long-service bonuses 1,957.0 1,969.3

Other non-current provisions 162.0 153.0

2,119.0 2,122.3

The change in non-current provisions for 2007 under the item c) is contained in the schedule of provisions on page 59.

15. Current interest-bearing liabilities

Apart from production and investment loans, this item also includes the ongoing account overdrafts as at December 31 of therespective reporting date. Details concerning the financial liabilities are contained under the item D.29. “Risk management”.

16. Trade accounts payable

All trade accounts payable in the amount of 31,417.4 k€ (2006: 30,218.4 k€) mature within a year.

17. Other current liabilities

in k€ Dec 31, 2007 Dec 31, 2006

Tax liabilities 3,068.8 3,565.1

Liabilities from social security contributions 902.4 850.7

Liabilities from financial instruments 45.5 110.9

Other liabilities 26,668.6 20,861.1

30,685.3 25,387.8

The overwhelming majority of the other liabilities consist of commission obligations to international commercial agents and per-sonnel obligations.

79N O T E S


18. Other current provisions

The other provisions contain cover for guarantees and risks in the sales area, as well as provisions from the personnel area. Theremaining current provisions for 2007 are contained in the schedule of provisions on page 59.

19. Revenue

Sales revenues derive mainly from the completion of orders. Information concerning the revenue structure is contained in theproduct segment sections as well as in the segment reporting in the Notes on pages 62 to 63.

20. Other income

in k€ 2007 2006

Income from the disposal of tangible and intangible assets 145.3 24.0

Own work capitalized 157.1 16.3

Other income 4,404.5 3,615.7

4,706.9 3,656.0

Other income largely consists of cost transfers to third parties.

21. Personnel expenses, corporate bodies and employees

in k€ 2007 2006

Wages 35,396.0 31,863.8

Salaries 32,001.2 30,449.0

Expenses for severance payments and pensions 1,285.0 1,043.9

Expenses for the company employee pension fund 116.2 83.2

Expenses for mandatory social security payments

as well as wage-related taxes and obligatory contributions 13,266.2 12,778.5

Other social security expenses 1,223.1 1,005.2

83,287.7 77,223.6

Average number of employees

2007 2006

Blue-collar 944 846

White-collar 564 520

Apprentices 85 86

1,593 1,452

22. Other expenses

in k€ 2007 2006

Taxes other than taxes on income 254.2 259.2

Administrative expenses 15,900.2 15,498.9

Marketing and sales expenses 11,915.0 10,171.6

28,069.4 25,929.7

80 N O T E S


As in the preceding year, this item consists of maintenance, legal, auditing and consulting costs, external services, expenses forevents, rents and leases, as well as the cost of the marketing and sales department.

23. Financial expenses

in k€ 2007 2006

Interest and other expenses 5,490.9 3,621.4

Interest on non-current personnel provisions 878.7 796.8

6,369.6 4,418.2

24. Financial income

in k€ 2007 2006

Income on securities 9.6 65.7

Gains from the disposal of securities 0.0 81.1

Other interest and similar income 958.1 1,280.4

967.7 1,427.2

25. Taxes on income

in k€ 2007 2006

Expense for current income tax 2,239.9 2,776.2

Change in deferred income tax 3,265.9 843.9

5,505.8 3,620.1

The reasons for the difference between the calculated income tax expense and effective tax expense in the Group are as follows:

in k€ 2007 2006

Profit before income tax 25,433.7 22,020.5

thereof 25% (2006: 25%) calculated income tax expense 6,358.4 5,505.1

Permanent differences (548.9) (498.4)

Effect of differing tax rates 509.1 1,278.0

Effect of tax rate change 102.8 19.2

Consumption of unaccounted loss carryforwards (112.9) (99.6)

Reversal of no longer applicable assets 891.9 0.0

Tax relief on limited companies1) (1,055.6) (1,507.0)

Capitalized loss carryforwards, for which no deferred

taxes had previously been reported (498.0) (1,077.2)

Taxes from previous years, withholding taxes, minimum taxes (141.0) 0.0

Effective tax income (–)/expense (+) 5,505.8 3,620.1

1) Taxes relating to minority interest

26. Consolidated cash flow statement

The consolidated cash flow statement was prepared according to the indirect method. The finance funds consist entirely of cashin hand and bank balances. Interest received and paid is reported as part of current business activities. Dividend payments arereported as part of financing activities. There were no material non-cash transactions. In 2007, a further capital contribution of429.0 k€ was made for the Chinese joint venture set up in 2005.

81N O T E S


27. Segment reporting

The development of Group companies takes special priority in internal reporting. For this reason, primary segment reporting is inline with the location of the assets of the Rosenbauer Group companies and secondary reporting according to product segments.

Transfer prices between the segments are based on comparable standard market conditions.

Segment reporting refers to sales revenues and operating results achieved from every single segment on local as well as exportmarkets. Segment assets and segment liabilities only concern those operating assets and liabilities that are used from a seg-ment for its operational activity. Not included are interest-bearing assets and liabilities.

Group revenues for the year 2007 in the amount of 426.1 m€ (2006: 372.0 m€) split up into Western and Eastern Europe (188.8 m€;2006: 177.4 m€), NAFTA countries (97.2 m€; 2006: 86.8 m€), Arab World (63.9 m€; 2006: 44.0 m€), Asia and Oceania (47.5 m€;2006: 29.3 m€) and other countries (28.7 m€; 2006: 34.5 m€).

The numerical presentation of the segments is available from the primary and secondary segment tables for the years 2006 and2007 on pages 62 to 63.

28. Capital management

The primary objective of Group capital management is to ensure that a high credit rating and solid equity ratio are maintainedin order to support business activities. The aim is a minimum equity ratio of 30% by means of long-term capital planning on arolling basis. This planning is coordinated with dividend and investment policy and is an important instrument for the annualrating discussions with the financing banks.

In addition, balance total management also serves to optimize the equity ratio which – with the continuous surveillance of pro-duction stocks and trade receivables – secures the optimization of committed current assets.

Furthermore, capital is monitored by means of the gearing ratio, which describes the relationship of net debt to interest-bearingcapital.

29. Risk management

As a global player, the Rosenbauer Group is inevitably subject to price, interest and exchange rate risks. It is company policy toclosely monitor risk positions, counteract internally the market development of existing risks to the greatest extent possible,steer net items towards an optimum result, and where necessary, undertake hedging. The aim of currency risk hedging is thecreation of a secure calculation basis for production contracts.

Overall evaluation: No material new or previously unrecognized risks resulted from the yearly evaluation of Group companies.In addition, on the basis of current information, there are no individual, existential risks that could have a decisive effect on theasset, financial and income situation of the Group.

Financial instruments form one important area of risk hedging. Financial instruments are cash business procedures based oncivil law contracts. In accordance with IFRS 7 these include original financial instruments such as receivables, trade accountspayable, financial receivables and liabilities. On the other hand, there are also derivative financial instruments which are usedas hedging transactions against the risks derived from exchange and interest rate shifts. Both categories of financial instrumentsare reported on subsequently.

82 N O T E S


All regular way purchases and sales of financial assets are recognized on the trade date, which is the date that the Group commitsto purchase the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assetswithin the period generally established by regulation or convention in the marketplace.

Due to daily or short-term maturity, the fair value of cash and short-term deposits, current receivables and payables largely cor-responds with the carrying value. Banks largely administer the securities reported under non-current assets within the scope ofportfolio management. On the reporting date, the securities were allocated a fair value of 213.6 k€ (2006: 202.5 k€).

a) CREDIT RISK

As a result of the customer structure and the credit risk hedging policy, the receivables risk can be regarded as negligible. Inaddition, all customers wishing to conclude business with the Group on a credit basis must undergo a creditworthiness exami-nation. Receivables are also constantly monitored, in order that the Group is not subject to material default risk. The reportedvalues in the balance sheet relating to receivables (for details please see D.4. and D.8.) simultaneously represent the maximumcredit risk and thus the risk of default. The carrying values reported largely correspond with the market values.

Within the European Union, receivables largely relate to local government legal entities. Where private business recipients oflower or unknown creditworthiness are involved, receivables are insured, e.g. in Austria via Österreichische KreditversicherungsCoface AG.

Receivables from customers outside the EU with low creditworthiness, including governmental clients, are insured by means ofdocumentary credits or bank guarantees. If required, alternative and also cumulative insurance is concluded with a state insur-ance company. In Austria this takes place via Österreichische Kontrollbank AG (risk insurance outside the OECD) and Öster-reichische Kreditversicherungs Coface AG (risk insurance inside the OECD).

The analysis of past due, not impaired trade and other receivables as at December 31 shows the following:

Neither impaired Not impaired, but past due

in k€ Total nor past due Within 90 days 91–180 days 181–360 days Over 360 days

Receivables 2007

Trade accounts receivable 42,761.4 28,936.1 10,012.4 2,981.8 689.9 141.2

Other receivables 3,945.9 3,945.9 0.0 0.0 0.0 0.0

46,707.3 32,882.0 10,012.4 2,981.8 689.9 141.2

Receivables 2006

Trade accounts receivable 42,101.2 34,832.1 4,897.1 1,349.3 766.9 255.8

Other receivables 3,612.2 3,612.2 0.0 0.0 0.0 0.0

45,713.4 38,444.3 4,897.1 1,349.3 766.9 255.8

On the closing date, neither impaired nor past due trade accounts and other receivables showed indications that the debtorswould default on their payment obligations.

83N O T E S


b) INTEREST RATE RISK

Interest and interest change risks relate primarily to payables with a period to maturity of over a year.

In the case of assets, an interest change risk only applies to the securities carried in the financial assets. On the reporting date,the securities were allocated with their fair value. A reduction in interest rate risk and earnings optimization is possible by meansof constant surveillance of interest trends and a resulting regrouping of the securities portfolio.

Non-current payables to banks consist of loans for various investments in operative business. Interest rates are hedged in themedium-term by means of interest cap instruments. However, longer-term negative price changes could have a negative effecton the income situation. A change in the interest rate of ±1% with regard to the credit portfolio on the closing date would haveled to a 700 k€ lower or higher result.

c) FOREIGN EXCHANGE RISK

In the case of securities carried under the consolidated non-current assets, investments take place almost entirely in the localcurrency of the Group company involved. Consequently, there is no foreign exchange risk in this connection.

Virtually all of the foreign exchange risks on the asset-side derive from trade accounts receivable in US dollars from internationalcustomers. In the majority of markets, invoicing takes place in euro. On the liabilities-side, with the exception of trade accountspayable, there are no foreign exchange risks of note, as ongoing financing of operative business takes place in the local currencyof the respective company involved. Possible foreign exchange risks from short-term peaks are borne by the company. Apartfrom hedging using derivative financial instruments, further hedging derives from naturally closed items which, for example, arecounterbalanced by trade accounts payable in US dollars.

The following table shows the sensitivity of the consolidated result before tax (due to changes in the fair value of the cash andcash equivalents and debts) and Group equity (due to changes in the fair value of currency future contracts), as opposed to areasonable assessment of a generally possible exchange rate change relating to currencies of major relevance to the Group. Allother variables remain constant.

Impact on

profit before tax Impact on equity

in k€ Price trend 2007 2006 2007 2006

US dollar +10% (317.9) (313.0) (3,197.2) (3,713.9)

–10% 317.9 313.0 3,056.8 3,315.9

Singapore dollar +10% 0.2 0.2 (166.6) (158.9)

–10% (0.2) (0.2) 166.6 158.9

Swiss franc +10% 14.3 (0.1) 129.0 (58.6)

–10% (14.3) 0.1 (129.0) 58.6

d) DERIVATIVE FINANCIAL INSTRUMENTS

Hedging of interest and foreign exchange risks is carried out by means of derivative financial instruments such as currency futuresand interest cap instruments. These are initially reported at market value on the date of the conclusion of the contract and thenrevalued with market values.

84 N O T E S


Derivative financial instruments recognized in the income statement

From a business perspective some transactions represent hedging, but fail to fulfill the hedge accounting requirements pursuantto IAS 39. The fair value changes of these financial instruments are recognized immediately in the income statement.

Nominal value Fair value

in k€ Dec 31, 2007 Dec 31, 2006 Dec 31, 2007 Dec 31, 2006

Currency futures 6,892.3 15,317.5 613.9 406.7

Interest instruments 22,414.5 36,534.9 246.0 124.8

Derivative financial instruments not recognized in the income statement

Derivatives that fulfill the demands for hedge accounting pursuant to IAS 39 are employed exclusively as hedging instruments forthe hedging of future cash flow and are reported separately in the consolidated statements of changes in equity table. The incomecontribution of the hedge transaction was recognized in the income statement upon realization of the underlying transaction.

Nominal value Fair value

in k€ Dec 31, 2007 Dec 31, 2006 Dec 31, 2007 Dec 31, 2006

Currency futures 14,459.7 21,376.1 760.4 648.0

In the 2007 financial year –568.6 k€ were transferred from the equity to the income statement.

e) LIQUIDITY RISK

Liquidity risk consists of the risk that due liabilities cannot be settled as scheduled. Group liquidity is secured by appropriateliquidity planning at the beginning of the year, sufficient financial assets with a maturity of less than one year and short-termcredit lines. The following table shows the structure of interest-bearing financial liabilities as at December 31, 2007, as well asthe structure of the trade payables and other liabilities.

Loan Final Interest Interest Dec 31, 2007 Dec 31, 2006

in 1,000 Currency Dec 31, 2007 maturity in % variable/fixed in k€ in k€

Interest-bearing liabilities

Production financing SGD 5,066 2008 Sibor+1.25 variable 2,396.6 2,382.0

Production financing USD 8,000 2008 6.250 variable 5,434.8 3,414.3

Production financing USD 4,000 2008 7.250 variable 2,717.4 0.0

Production financing USD 4,970 2008 5.875 variable 3,376.5 3,072.8

Production financing USD 4 2008 6.500 variable 3.0 0.0

Production financing USD 1,500 2008 5.971 variable 1,019.0 758.7



Production financing CHF 0 2007 Libor+1.50 variable 0.0 1,057.6

Production financing € 1,000 2008 5.900 variable 1,000.0 2,000.0

Production financing € 0 2007 4.640 variable 0.0 2,847.2

Production financing € 0 2007 4.188 variable 0.0 2,100.0

Production financing € 75 2008 Euribor+0.75 variable 74.6 0.0

Production financing € 96 2008 6.830 fixed 95.9 95.9

Research promotion fund € 0 2007 2.500 fixed 0.0 180.0


Investment loan € 87 2008 1.500 fixed 87.2 174.4

Loans on overdraft € 6,644.3 10,776.2

Short-term total 23,571.4 29,091.8

85N O T E S


Loan Final Interest Interest Dec 31, 2007 Dec 31, 2006

in 1,000 Currency Dec 31, 2007 maturity in % variable/fixed in k€ in k€

Short-term total 23,571.4 29,091.8



Production financing € 887 2010 6.830 fixed 886.8 982.6


Investment loan USD 3,500 2010 5.750 variable 2,377.7 2,276.2

Investment loan € 10,000 2011 5.270 variable 10,000.0 10,000.0

Investment loan € 0 2008 1.500 fixed 0.0 87.2

Long-term total 13,533.2 13,761.2

Interest-bearing liabilities 37,104.6 42,853.0

The entire interest-bearing financial liabilities amount to 37,104.6 k€ (2006: 42,853.0 k€). The interest on interest-bearing liabili-ties amounts to 4,897.9 k€ (2006: 2,735.9 k€), which represented an average of 6.1% (2006: 5.0%). The carrying values reportedlargely correspond with the market values. As the ancillary costs relating to the financial liabilities listed in the table above atnominal interest rates are low, the nominal interest rate corresponds with the effective interest rate, whereby there are no effectson the assets, financial and income situation.

Non-current variable interest-bearing liabilities are based on interest agreements on 3-months respectively 6-months Euribor/US-Libor.

The past financial year saw a breach of contract with regard to a loan of 1.8 m USD (a key indicator defined in the contract wasnot attained), which according to the contract would have facilitated the immediate calling in of the loan by the bank. This con-tractual infringement was removed after the balance-sheet date, but prior to the publication of the financial statements. The loanwith final maturity in 2008 was reported as at December 31, 2007 under the current financial liabilities.

Maturity pattern

in k€ Total Within 1 year 1–2 years 2–3 years 3–4 years 4–5 years Over 5 years

Interest-bearing

liabilities

2007 40,985.5 25,354.6 845.3 3,842.8 10,551.4 23.9 367.5

2006 46,940.3 30,962.2 1,211.9 729.7 3,611.5 10,425.0 0.0

Trade accounts

payable

2007 31,417.4 31,417.4 0.0 0.0 0.0 0.0 0.0

2006 30,218.4 30,218.4 0.0 0.0 0.0 0.0 0.0

Other liabilities

2007 32,682.3 30,685.3 138.5 138.5 138.5 138.3 1.443.2

2006 26,841.7 25,387.8 178.6 178.6 178.6 178.4 739.7

86 N O T E S


f) TRANSFER OF THE CARRYING VALUES PURSUANT TO IAS 39

The transfer of the carrying values per classes pursuant to IAS 39 is as follows:At fair value

At through Fair value

Carrying amortized through income of financial No financial

in k€ value costs equity statement instruments instrument

December 31, 2007

Securities 213.6 0.0 213.6 0.0 213.6 0.0

Receivables 49,045.6 46,707.3 771.9 893.9 48,373.1 672.5

Cash and

short-term deposits 6,314.5 6,314.5 0.0 0.0 6,314.5 0.0

Interest-bearing liabilities 37,104.6 37,104.6 0.0 0.0 37,104.6 0.0

Trade accounts payable 31,417.4 31,417.4 0.0 0.0 31,417.4 0.0

Other liabilities 32,682.3 28,665.6 11.5 34.0 28,711.1 3,971.2

December 31, 2006

Securities 202.5 0.0 202.5 0.0 202.5 0.0

Receivables 49,409.2 45,713.4 676.2 614.2 47,003.8 2,405.4

Cash and

short-term deposits 3,945.6 3,945.6 0.0 0.0 3,945.6 0.0

Interest-bearing liabilities 42,853.0 42,853.0 0.0 0.0 42,853.0 0.0

Trade accounts payable 30,218.4 30,218.4 0.0 0.0 30,218.4 0.0

Other liabilities 26,841.7 22,315.0 28.2 82.7 22,425.9 4,415.8

The transfer of the carrying values per category pursuant to IAS 39 is as follows:

Available- Derivatives At fair value

for-sale relating to through Fair value

Carrying Loans and financial hedge income of financial No financial

in k€ value receivables investments accounting statement instruments instrument

December 31, 2007

Securities 213.6 0.0 213.6 0.0 0.0 213.6 0.0

Receivables 49,045.6 46,707.3 0.0 771.9 893.9 48,373.1 672.5

Cash and

short-term deposits 6,314.5 6,314.5 0.0 0.0 0.0 6,314.5 0.0

Interest-bearing liabilities 37,104.6 37,104.6 0.0 0.0 0.0 37,104.6 0.0

Trade accounts payable 31,417.4 31,417.4 0.0 0.0 0.0 31,417.4 0.0

Other liabilities 32,682.3 28,665.6 0.0 11.5 34.0 28,711.1 3,971.2

87N O T E S


Available- Derivatives At fair value

for-sale relating to through Fair value

Carrying Loans and financial hedge income of financial No financial

in k€ value receivables investments accounting statement instruments instrument

December 31, 2006

Securities 202.5 0.0 202.5 0.0 0.0 202.5 0.0

Receivables 49,409.2 45,713.4 0.0 676.2 614.2 47,003.8 2,405.4

Cash and

short-term deposits 3,945.6 3,945.6 0.0 0.0 0.0 3,945.6 0.0

Interest-bearing liabilities 42,853.0 42,853.0 0.0 0.0 0.0 42,853.0 0.0

Trade accounts payable 30,218.4 30,218.4 0.0 0.0 0.0 30,218.4 0.0

Other liabilities 26,841.7 22,315.0 0.0 28.2 82.7 22,425.9 4,415.8

g) NET RESULTS BY EVALUATION CATEGORYGains from

Foreign currency the disposal Net

in k€ Interest Impairment translation of securities gains/losses

December 31, 2007

Loans and receivables (4,532.8) 286.4 812.5 0.0 (3,433.9)

Available-for-sale

financial investments 9.6 0.0 0.0 0.0 9.6

(4,523.2) 286.4 812.5 0.0 (3,424.3)

December 31, 2006

Loans and receivables (2,341.0) 212.4 724.2 0.0 (1,404.4)

Available-for-sale

financial investments 65.7 0.0 0.0 81.1 146.8

(2,275.3) 212.4 724.2 81.1 (1,257.6)

30. Events after the balance-sheet date

There were no material events up to the preparation of the consolidated financial statements.

31. Contingent liabilities and commitments

Rosenbauer International AG made no commitments to third parties other than Group companies. In addition, there were no con-tingent liabilities which could lead to material liabilities.

88 N O T E S


32. Related party disclosures

SUBSIDIARIESType of

in 1,000 Currency Equity Holding1) Result2) consolidation

Rosenbauer Österreich GmbH,

Austria, Leonding € 2,951 100% 03) FC

Rosenbauer Management Services GmbH,

Austria, Leonding € 82 100% 4 FC

Rosenbauer Holding GmbH & Co. KG,

Germany, Karlsruhe € 5,986 100% (101) FC

Rosenbauer Deutschland GmbH,

Germany, Passau € 892 100% 221 FC

Rosenbauer Feuerwehrtechnik GmbH,

Germany, Luckenwalde € 4,468 100% 404 FC

Metz Aerials Management GmbH,

Germany, Karlsruhe € 25 100% 1 FC

Metz Aerials GmbH & Co. KG,

Germany, Karlsruhe € 4,619 100% 456 FC

Rosenbauer Finanzierung GmbH,

Germany, Passau € 40 100% 1 FC

Rosenbauer AG,

Switzerland, Oberglatt CHF 3,872 100% 300 FC

Rosenbauer Española S.A.,

Spain, Madrid € 4,033 62.11% 1,579 FC

General Safety Equipment LLC.,

USA, Minnesota4) USD 16,375 50% 2,332 FC

Central States Fire Apparatus LLC.,

USA, South Dakota4) USD 60,274 50% 9,240 FC

Rosenbauer Holdings Inc.,

USA, South Dakota USD 17,206 100% 3,884 FC

Rosenbauer America LLC.,

USA, South Dakota4) USD 84,552 50% 11,230 FC

RK Aerials LLC.,

USA, Nebraska4) USD 7,237 25% 1,202 FC

Rosenbauer Motors LLC.,

USA, Minnesota4) USD 367 50% 84 FC

SK Fire PTE Ltd.,

Singapore SGD 6,251 100% 1,554 FC

Rosenbauer YongQiang Fire Fighting

Vehicles Ltd., China, Dongguan CNY 47,542 50% 101 AE

Eskay Rosenbauer Sdn Bhd,

Brunei BND (88) 80% (90) FC

Rosenbauer South Africa (PTY) Ltd.,

South Africa, Halfway House ZAR 308 100% (77) FC

1) Direct interest FC = Fully consolidated companies2) Profit/loss for the year after movements in the reserves AE = At equity consolidated companies3) Profit transfer agreement with Rosenbauer International AG4) Deciding vote right with Rosenbauer International AG

89N O T E S


The following transactions took place with closely associated persons. In particular, the reported purchases of goods relate tothe supply of vehicles of a Spanish production company to the Spanish subsidiary, whereby the manager of the Spanish sub-sidiary is also a member of the management of the Spanish production company. The rental agreement relates to the use of aproperty and was agreed between the manager and an American company. The one concerning an office in Beijing was agreedbetween the manager of the joint venture and Rosenbauer International AG.

in k€ Dec 31, 2007 Dec 31, 2006

Sale of goods 53.7 9.0

Purchase of goods 2,314.9 1,441.1

Receivables 9.5 0.0

Liabilities 1,017.7 0.0

Rental agreement for land 823.0 923.7

Rental agreement for office 90.2 103.4

The following transactions were made with the joint venture in China:

in k€ Dec 31, 2007 Dec 31, 2006

Sale of goods 776.0 1,545.7

Purchase of goods 2,590.0 882.0

Receivables 658.7 656.9

Liabilities 541.7 842.3

The salaries of the members of the Rosenbauer International AG Executive Board in 2007 amounted to 3,058.9 k€ (2006:2,753.4 k€) and consisted of a basic salary (2007: 1,137.8 k€; 2006: 982.4 k€), fees (2007: 1,740.5 k€; 2006: 1,603.0 k€) andrights for the creation of independent retirement and dependant provisions (2007: 180.6 k€; 2006: 168.0 k€). Provisions for sev-erance payments of the Executive Board total 2,048.3 k€ as at December 31, 2007 (2006: 1,723.2 k€). Total expenses to themembers of the Executive Board which consist of salaries and changes in provisions for severance payments amounted to3,384.1 k€ in the financial year 2007 (2006: 2,349.4 k€). Following the termination of an employment relationship, there areno future burdens on the company resulting from company pension scheme contributions for Executive Board members.

Fees are calculated as a percentage of the consolidated income statement result prior to income tax and minority interest, where-by the percentage is gradually reduced in line with improvements in the consolidated profit.

33. Earnings per share

The earnings per share are calculated on the basis of IAS 33 (Earnings per Share) by dividing the consolidated profit minusminority interest by the number of shares issued. As there were no “ordinary shares with a potentially dilutory effect” in circula-tion during the past financial year, the “diluted earnings per share” correspond with the “basic earnings per share”. The calcu-lation takes the following form:

2007 2006

Consolidated profit minus minority interest k€ 15,140.4 13,674.4

Average number of shares issued units 6,800,000 1,700,000

Basic earnings per share €/share 2.23 8.04

Diluted earnings per share €/share 2.23 8.04

Between the balance-sheet date and the preparation of the consolidated financial statements, there were no transactions withpotential ordinary shares.

90 N O T E S


34. Proposal for the distribution of profits

The individual financial statements of the company prepared according to UGB (Austrian Corporate Code) provide the basis forthe proposal for the distribution of profits. A net profit of 4,904,286.65 € is reported in the individual financial statements ofRosenbauer International AG. The Executive Board proposes to distribute this net profit through the payment of a dividend p.a.of 0.7 € (2006: 2.8 € for 1,700,000 ordinary shares) per share (4,760,000.0 € for 6,800,000 ordinary shares). The carryforwardto new account: 144,286.65 €.

35. Corporate bodies

SUPERVISORY BOARD

– Peter Louwerse (Chairman until May 25, 2007) – Dieter SiegelInitial appointment: August 28, 1992 Initial appointment: May 18, 2002

End of current term: General Shareholders’ Meeting 2008 End of current term: General Shareholders’ Meeting 2008

Resignation: May 25, 2007

– Alfred Hutterer (Chairman since May 26, 2007) – Karl OzlsbergerInitial appointment: May 24, 2003 Initial appointment: May 26, 2007

End of current term: General Shareholders’ Meeting 2008 End of current term: General Shareholders’ Meeting 2012

– Christian Reisinger (Vice Chairman since May 26, 2007)Initial appointment: May 25, 2006

End of current term: General Shareholders’ Meeting 2011

In the 2007 financial year, the Supervisory Board received emoluments of 184.3 k€ (2006: 175.4 k€). Emoluments to the Super-visory Board consist of a fixed amount and a variable sum. The latter is calculated as a percentage of the consolidated profit inthe income statement prior to income tax and minority interest, whereby the percentage is gradually reduced in line with improve-ments in the consolidated profit.

Works Council delegates to the Supervisory Board:– Alfred Greslehner– Rudolf Aichinger

EXECUTIVE BOARD

– Julian Wagner – Manfred SchwetzPresident and CEO Member of the Executive Board

– Robert Kastil – Gottfried BrunbauerMember of the Executive Board Member of the Executive Board

Leonding, March 19, 2008

The Executive Board

Wagner Schwetz Kastil Brunbauer

91N O T E S


AUDITOR’S REPORT(TRANSLATION)

Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of ROSENBAUER INTERNATIONAL Aktiengesellschaft, Linz,for the financial year from January 1, 2007 to December 31, 2007. These consolidated financial statements comprise the balancesheet as at December 31, 2007, and the income statement, statement of changes in equity and cash flow statement for the yearended December 31, 2007, and a summary of significant accounting policies and other explanatory notes.

MANAGEMENT’S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS

The Company’s management is responsible for the preparation and fair presentation of these consolidated financial statementsin accordance with International Financial Reporting Standards as adopted by the EU. This responsibility includes: designing,implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that arefree from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and mak-ing accounting estimates that are reasonable in the circumstances.

AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted ouraudit in accordance with laws and regulations applicable in Austria and in accordance with International Standards on Auditing,issued by the International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC).Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assur-ance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated finan-cial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of materialmisstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considersinternal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order todesign audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effec-tiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used andthe reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consoli-dated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

92


OPINION

Our audit did not give rise to any objections. Based on the results of our audit in our opinion, the consolidated financial state-ments present fairly, in all material respects, the financial position of the Group as of December 31, 2007, and of its financialperformance and its cash flows for the financial year from January 1, 2007 to December 31, 2007 in accordance with InternationalFinancial Reporting Standards as adopted by the EU.

Report on Other Legal and Regulatory Requirements

Laws and regulations applicable in Austria require us to perform audit procedures whether the consolidated management report isconsistent with the consolidated financial statements and whether the other disclosures made in the consolidated managementreport do not give rise to misconception of the position of the group.

In our opinion, the consolidated management report for the Group is consistent with the consolidated financial statements.

Vienna, March 19, 2008

Wirtschaftsprüfungsgesellschaft mbH

Gerhard Schwartz m.p. Johanna Hobelsberger-Gruber m.p.(Chartered Accountant) (Chartered Accountant)

On disclosure or reproduction of the financial statements all consolidated accounts in a form (e.g. shortened and/or translatedinto other language) differing from the confirmed setting, the auditor’s opinion may neither be quoted nor referred to withoutapproval.

93A U D I T O R ’ S R E P O R T


Statement of the Executive Board pursuant to § 82 (4) of the Austrian Stock Exchange Act (“Börsegesetz”)

The consolidated financial statements of Rosenbauer International AG per December 31, 2007 have been drawn up in accordance with IFRS (as adopted in the European region) and, to the best of our knowledge, convey a true and fair view of the asset position, financial status and earnings situation of all the enterprises included in the consolidation. The Situation Report presents a true and fair view of the asset position, financial status and earnings situation and provides information on the course of business at the Rosenbauer Group. Leonding, March 19, 2008 The Executive Board

Documents

Annual Financial Report 2007€¦ · GmbH & Co.KG GERMANY 100% Rosenbauer Österreich GmbH AUSTRIA 100% Rosenbauer Española S.A. SPAIN 62.11% Rosenbauer AG SWITZERLAND 100% SK Fire